Ethereum Futures have surged 40% in volume, while profit-taking holds back a strong bullish rally.
- Ethereum Futures surged 40% in volume as traders positioned themselves for potential price movements.
- Profit-taking by investors limits a major ETH rally, despite increased outflows from exchanges.
Ethereum’s [ETH] price is experiencing a period of volatility, with fluctuating peaks and troughs in recent weeks.
After briefly dropping below $2,600, the price of Ethereum has shown signs of recovery, trading at $2,645.52 at press time.
Over the last 24 hours, the price has increased by 0.29%, while the past week has seen a minor decline of 0.12%. Ethereum’s market capitalization was $318.46 billion, with a 24-hour trading volume of over $17.88 billion.
Key technical levels to watch
Ethereum’s price is sitting near a critical support level at $2,181.30. This level has been reinforced by an ascending trendline that has supported the crypto since mid-2022.
Should Ethereum break below this support, the market could see a downward trend, potentially leading to further price drops.
On the other hand, Ethereum is facing resistance around $2,926. A break above this resistance could drive the price higher, with a potential target of $3,540.
If buying momentum strengthens, the price might even test previous highs around $4,000.
For bullish investors, the upward trendline will play a crucial role in maintaining market confidence.
Source: TradingView
Ethereum Futures surge amid volatility
The MACD indicator for Ethereum showed a bearish sentiment, with both the MACD line and the signal line below zero.
However, if the MACD histogram began to show positive movement, it could signal a reversal, supporting a more bullish scenario for Ethereum in the coming weeks.
Recent futures data from Coinglass revealed increased activity in the Ethereum market. Open Interest in ETH futures has risen by 2.94%, now standing at $12.66 billion, indicating growing trader interest.
Source: Coinglass
Additionally, ETH’s Futures volume has jumped by 40.39% to $25.63 billion, while Options volume has surged by 258.39%, reaching $564.17 million.
These increases reflected rising participation in Ethereum Futures trading, suggesting market participants are positioning themselves for potential price movements.
Profit-taking, not accumulation
An assessment by AMBCrypto noted that since late July, Ethereum outflows from centralized exchanges have increased, suggesting accumulation by some investors.
However, this accumulation was not as intense as during the February or November 2023. Over the last two weeks, netflows have shown several positive days, indicating that some holders have been taking profits.
While the volume of these outflows is not large enough to suggest an exodus, it does highlight a portion of the market opting to cash in on recent price gains.
The netflows data suggest that, while there is some accumulation, it may not be sufficient to drive a major bullish rally for Ethereum in the near term.
Instead, profit-taking seems to be the dominant behavior as some holders capitalize on Ethereum’s performance since March 2024.