Ethereum lags even as derivative traders bet big on ETH rally, is return to $4,500 likely?
## Ethereum Holds Steady Above $3,300: Bulls Reign Supreme?
Ethereum (ETH) is showing resilience, holding firm above $3,300 amidst anticipation for upcoming events. Derivatives traders are exhibiting strong bullish sentiment, with open interest surging past $30 billion – a near-record high. This bullishness is further supported by significant institutional investment and growing on-chain activity.
**Derivatives Data Points to Bullish Outlook:**
Coinglass data reveals a 47% increase in 24-hour options trade volume and over $1 billion in options volume. The long/short ratio on major exchanges like Binance and OKX is above 1, confirming the bullish sentiment.
**On-Chain Metrics Paint a Positive Picture:**
Large wallet investors are consistently accumulating ETH, defying the lackluster price performance of 2024. Santiment data shows a steady increase in ETH supply held by whales, alongside positive funding rates throughout January 2025. This accumulation across various wallet sizes points to strong confidence in the future of ETH.
**Market Movers Fueling the Rally:**
Institutional interest is soaring, with Farside Investors reporting near-doubling of institutional inflows on January 16th, reaching $166.6 million in ETH Spot ETF inflows. Simultaneously, Layer 2 adoption is exploding, exceeding 10 million weekly active addresses – a 300% year-over-year increase. This growth signifies increased utility and revenue generation for the Ethereum network.
**Technical Analysis Suggests Further Upside:**
Technically, ETH is poised for a potential rally. The RSI and MACD indicators on the weekly chart display bullish signals. A break above the December 2024 peak could propel ETH towards $4,578, potentially reaching its previous all-time high of $4,878.
**Vitalik Buterin Endorses Layer-2 Growth:**
Vitalik Buterin’s endorsement of Layer-2 solutions, citing their benefits for both businesses and users, underscores the long-term potential of the Ethereum ecosystem. His comments on projects like Soneium highlight the growing utility and accessibility facilitated by Layer-2 scaling solutions.
**Disclaimer:** This information is for educational purposes only and does not constitute investment advice. Always conduct thorough research before making any investment decisions.
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