ETH Price Targets $5000 Post Ethereum Upgrade: Derivatives Data

Vitalik Buterin Ethereum Eth

Futures and options data for Ethereum suggest that the price of ETH could reach $5000 following the Ethereum London upgrade, known as Ethereum Dencun. Analysts are predicting an imminent rally in the price of ETH based on this data.

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The long-awaited Dencun upgrade for Ethereum is set to launch on the Ethereum mainnet at epoch 269568, following successful activations on all testnets. Scheduled for around 2 pm UTC, according to the Ethereum Foundation, anticipation for the Dencun hard fork has propelled ETH prices past $2500 and even $4000. Traders are now eagerly anticipating ETH to reach $5000 post-upgrade.


Ethereum Dencun Upgrade Signals Surge in ETH Prices

The Ethereum Dencun upgrade marks a significant advancement for the Ethereum ecosystem, particularly with the implementation of EIP-4844, also known as “protodanksharding”, aimed at drastically reducing L2 transaction costs.

The reduction in transaction fees is a major factor driving the rise in ETH prices, with derivatives data providing crucial signals for upcoming trends.

Ethereum futures open interest (OI) has reached an all-time high of $14 billion, showing a 3% increase in 24 hours and 1% in the last 4 hours. Leading exchanges like Binance, Bybit, and OKX have seen a 2-3% surge in ETH OI, while CME and Deribit have experienced a 5-6% jump, indicating significant buying from institutional investors.

Furthermore, Ethereum options OI has also hit a new peak at $14.77 billion, with call options open interest at 65.87% and put options open interest at 34.13%, backed by substantial volumes for calls.

Source: Deribit

According to Deribit data, the put-call ratio stands at 0.65 over the last 24 hours, with 112,304 put volume and 172,958 call volume. Additionally, options traders are increasingly bullish amid the Ethereum Dencun upgrade, evidenced by 44.8K calls for a strike price of $4500 and 50.9K calls for $5000 before March 29.

Crypto Market Analysis: Influx of $83 Billion and ETH Price Outlook

Renowned crypto analyst Ali Martinez has revealed a staggering influx of approximately $83 billion into the crypto market. According to Glassnode, Bitcoin and Ethereum account for $75 billion of this total money inflow.

Despite a drop in the odds of an Ethereum ETF to 30% by Bloomberg ETF analysts, the upcoming Ethereum ETF remains a significant factor driving recent adoption.

Trader and analyst Michael van de Poppe predicts that it’s only a matter of time before Ethereum begins to rise. He advises traders to keep an eye on the ETH/BTC pair chart for further confirmation of another rally in altcoins as Bitcoin’s price stabilizes. Van de Poppe suggests that if the ETH price breaks above the supply zone near $4550, it could easily reach $5000.

In the past 24 hours, the price of Ethereum has risen by 1%, with the current price trading at $4,056. The 24-hour low and high are $3,831 and $4,083, respectively. Additionally, trading volume has increased by 20% in the last 24 hours, indicating growing interest among traders.


Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

 

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  • Asad

    Asad is a dynamic and talented cryptocurrency content author who brings a wealth of knowledge and enthusiasm to every article. With a deep understanding of blockchain technology and a passion for digital assets, Asad's writing is both informative and engaging.

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