Recent highs, ETF data, and whale accumulation are sparking conversations about a potential rise to $5K. The current trend shows strong activity in derivatives, as wealthy investors are making significant wagers on ETH’s rise. Between 2021 and 2022, the open interest in Ethereum derivatives remained quite limited and mainly concentrated on short-term maturities, indicating minimal involvement from institutional players.
The bear market of 2022 intensified this trend, reducing demand and shaking confidence in ultra-short contracts. As we progressed through 2023 and into 2024, maturities began to display a range of options, suggesting a steady and reliable recovery in market sentiment. By 2025, open interest has surged significantly across the board, especially in 1-3 month contracts, driving ETH’s rise toward the $5,000 milestone. Although this significant concentration may heighten volatility at expiry, the rise in 3-6 month open interest suggests a robust long-term belief. The top altcoin is now outpacing Bitcoin in terms of performance. In August, around $4 billion was directed towards U.S. ETH ETFs, while BTC ETFs saw outflows amounting to $751 million. Institutions are increasingly acknowledging Ethereum as more than merely an asset; it is seen as a fundamental infrastructure for yield generation, tokenization, and smart contract operations.
In a significant turn of events, three whale wallets have recently obtained over $205 million in ETH. With such strong support, ETH seems ready to lead the upcoming surge. There is a possibility for additional growth, but… ethereum held steady above $4,500 at the time of reporting, with daily candles indicating a strong bullish trend. The EMA cluster is notably situated beneath current levels, suggesting strong support areas between $3,600 and $4,300. On-chain volume saw an increase, with OBV reaching 13.18 million.
The RSI, now at 59, reflects a positive sentiment while staying below overbought thresholds, indicating there is still room for additional gains before hitting a peak. If ETH stays above $4,500, the upcoming phase might test the $4,800-$5,000 range. That being said, any decline in RSI or abrupt decrease in volume could lead to short-term adjustments, making this a crucial point to keep an eye on.