Following the correction experienced last week, the price movement of Ethereum, the main altcoin, has begun to recover. After that, a higher local low was made on Thursday, which eventually caused prices to rise.
Ethereum at the time of writing traded at $1,777 on FTX exchange with a daily trading volume of $17.5 million Ethereum is up 12% for the week
Prior local resistance at $1,680 was swiftly overcome, ultimately returning to a significant swing high at $1,780.
Recent price action, suggests that the cryptocurrency market is following the movement of stocks once more. On the back of unexpectedly falling bond yields over the previous week, risk assets have continued to rise.
Given the aggressively hawkish posture the Federal Reserve has taken, the market currently appears to be taking into account the possibility that inflation may decline more quickly than anticipated.
Glassnode’s latest research reveals that there is considerable investor interest in trading BTC futures markets and hoarding their ETH bags, despite the fact that the bitcoin price has been trading sideways with a little recovery and little volatility over the previous week.
Glassnode claims that the Bitcoin derivatives market has a low directional bias, which suggests that investors are trading cautiously despite the slight upward price rise.
Investors are more upbeat about Ethereum (ETH), meanwhile, because withdrawals from exchanges “are relatively minor” in comparison to the rising demand for the token as the Merge date draws near.
For the first time ever, investors are currently more interested in trading Ethereum derivatives than bitcoin, with $6.6 billion in ETH traded versus $4.8 billion in BTC.
Additionally, this indicator reveals that the open interest in ETH options is close to exceeding the all-time high (ATH) milestone set in late November 2021, when the price of ETH was $4,900.
Given that the vast majority of investors are placing positive wagers on values between $2,200 and $5,000, the Ethereum Merge has significantly influenced the demand for ETH and the rise in its price. Ethereum should have successfully switched to Proof of Stake once the Merge is finished without changing the data of the initial Proof of Work chain.
