Key takeaways
- Ether is trading above $3,600 after adding 6% to its value over the weekend.
- The coin could rally towards $3,900 as technical indicators flash bullish signals.
Strong derivatives markets signal a bullish trend
The cryptocurrency market is having a strong start to the week, and this has shown in the futures and options markets. The futures and options markets for Ethereum are very positive, with the total Open Interest (OI) in futures surging to about $40.11 billion across all exchanges, which is almost 11.5 million ETH in total exposure.
Data obtained from Coinglass revealed that Binance, the leading crypto exchange by daily trading volume, has the most open interest at $8.15 billion, while CME is close behind with $7.57 billion.
The growing volume suggests that more institutions are increasing their exposure to the Ethereum market.
In addition to that, the options market is also bullish, with Calls making up 65.05% of all open interest, while Puts account for 34.95%. There are almost 2.1 million ETH in call options and 1.13 million ETH in puts. This suggests that most traders are predicting a surge in Bitcoin’s price in the near term.
Traders are predicting a new all-time high price for Ether in the near term, with many of them expecting the leading altcoin to trade between $4k and $6k by the end of the year. At press time, ETH is trading above $3,600 per coin.
ETH eyes $3,900 as technical indicators shift bullish
The ETH/USD 4-hour chart is bearish and efficient as Ether has performed positively in recent days. The technical indicators have switched bullish on the 4-hour chart, suggesting a buying bias at the moment.
The RSI of 63 shows that buyers are currently in control, and Ether could soon enter the overbought region if the bullish bias continues. The MACD lines are also within the positive region, indicating a strong bullish bias.
If the recovery continues, ETH could rally towards the next major resistance level at $3,910 over the coming hours or days. An extended rally would allow Ether to hit the TLQ and major resistance level at $4,271.
However, if the market undergoes a correction, ETH could lose steam and drop to the Friday low of $3,197.
