Renewed optimism in Ethereum is evident as traders increase bullish positions in the second-largest cryptocurrency. Derivatives markets are showing a surge in demand for upward bets.
CryptoSlate reports that Ethereum has climbed approximately 11% this month after four consecutive weeks of gains—its longest stretch nearly a year. This positive momentum pushed ETH to about $2,330, marking its highest point since February and placing it on track for consecutive monthly increases last seen in July and August 2025.
This price movement has refocused market attention on the $3,000 threshold after months of underperformance relative to Bitcoin.
The derivatives platform Deribit showcases significant interest with open interest around the $3,200 strike amounting to more than $322 million. The following close contender is the $2,500 strike with approximately $320 million in open interest.
Call options allow traders to purchase an asset at a predetermined price, typically increasing in value as the underlying token approaches this strike level. For Ethereum, significant activity around the $2,500 and $3,200 levels indicates trader expectations for further movement beyond current recovery ranges.
However, substantial open interest does not necessarily indicate direct bullish bets; it can reflect hedging, spread trades, volatility strategies, or market-maker exposure.
Ethereum ETFs have shown one of their longest inflow streaks this year, with US spot Ethereum exchange-traded funds drawing over $633 million from April 9 to April 22. This streak is the most extended since June 2025. Yet, on April 23, these funds experienced net outflows totaling $75.94 million, marking their first negative session since early April.
This inflow streak supports the notion that regulated investors are increasingly turning towards Ethereum after a period of stronger institutional interest in Bitcoin. ETF flows provide insight into demand through spot products rather than leveraged derivatives positions.
Alphractal data indicates that its Ethereum Smart Money Flow Index, a measure of institutional activity, has shown positive divergence from price for several weeks, suggesting improving fund demand prior to visible recovery in spot prices. However, the recent outflow tempers this outlook as it suggests Ethereum lacks the ETF-driven consistency seen in Bitcoin during stronger rallies.
While ETH’s flow picture is showing signs of improvement, it has not yet reached a level strong enough to independently drive market trends.
Binance order-flow data indicates a gradual return of demand rather than aggressive accumulation. CryptoQuant reports that Binance’s Cumulative Volume Delta (CVD) recorded a positive figure of roughly 48,400 recently, signifying stronger buying activity over selling orders.
This suggests Ethereum’s rise is not solely due to increased speculative leverage but also the reentry of buyers into the market, aiding its stabilization post earlier declines. The correlation coefficient between ETH’s price and order flow stands at 0.66, revealing a moderately strong relationship between buying activity and price movement. However, the signal remains moderate as Ethereum trades below previous highs, with CVD readings not indicating robust spot accumulation typically seen during confirmed breakouts.
The sustainability of Ethereum’s uptrend hinges on continued improvement in order flow. A stronger CVD reading would validate bullish sentiment shown in options and ETFs, while a stall might expose the rally to speculative risks.
Despite bullish indicators, CryptoQuant data from Binance shows that leverage ratios have surpassed price for the first time in months. This suggests traders are expanding borrowed exposure faster than investors are purchasing Ethereum outright—a scenario often seen during initial recoveries as traders anticipate a breakout before spot flows confirm it fully.
This pattern can facilitate rapid gains under favorable conditions but also heightens the risk of forced selling if prices reverse, given leveraged positions’ sensitivity to adverse movements. If ETH fails to maintain recent levels, liquidation of long positions could amplify downward pressure.
Although these leverage signals present risks, they contrast against a generally positive set of indicators: four consecutive weeks of gains for Ethereum, Deribit traders targeting higher price strikes, a 10-day inflow streak in ETFs, and CVD readings showing dominant buy orders. The challenge lies in aligning the pace at which these indicators evolve.
For Ethereum to approach $3,200, it requires that spot buyers continue absorbing supply, ETF flows stabilize, and leverage expansion ceases outpacing price gains. Without this alignment, the same derivatives exposure aiding the rally might exacerbate losses during a potential breakout failure.