Ethereum Derivatives Surge $560B: ETH Bulls Eye $4,800 Rally

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• ETH derivatives volume reached nearly $560B in October, signaling strong speculative demand.
  
• 70% of traders hold long positions, showing market optimism around $4,000.
  
• Minor OI dip (4.28%) reflects cautious profit-taking, not weakening momentum.

Ethereum [ETH] derivatives trading on Binance soared to nearly $560 billion in October, ranking among the highest in history. This surge occurred as ETH consolidated near $4,000, highlighting heightened activity from both institutional and retail traders eager to capitalize on short-term volatility.

ETH Holds Critical Support Around $3,950

Despite recent profit-taking, Ethereum has maintained a strong ascending support near $3,950. The 4-hour chart shows buyers consistently defending higher lows since mid-October, keeping the bullish structure intact. Key resistance levels are at $4,259 and $4,756, with a potential breakout above the upper barrier likely to trigger a rally toward $4,800. Conversely, a breakdown of the ascending trendline could lead to minor corrections, but the overall mid-term momentum remains bullish.

Long Positions Dominate ETH Market

Data from Binance reveals 70.63% of ETH traders are in long positions, indicating strong confidence in further price appreciation. This bullish skew often reflects market optimism and can accelerate momentum when supported by robust technical and on-chain signals. However, concentrated long positions can amplify volatility if liquidations spike during small pullbacks. Still, the dominant long sentiment underscores traders’ confidence as Ethereum hovers near $4,000.

Open Interest Shows Cautious Profit-Taking

Ethereum’s Open Interest (OI) fell 4.28%, suggesting some traders are moderating leverage after the massive derivatives buildup. This adjustment is typically a risk management strategy rather than a signal of weakness. Continued liquidity at current price levels indicates capital remains engaged, supporting the broader bullish framework observed across both derivatives and spot markets.

Ethereum’s record derivatives volume and strong long positioning reflect significant market optimism. However, the minor pullback in OI highlights traders’ caution, and liquidation events could trigger short-term volatility. Sustained bullish momentum depends on ETH breaking above $4,756 with fresh capital inflows while maintaining robust support near $3,950. For now, Ethereum remains in a bullish consolidation phase, with upside potential if the current trend holds.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

Also Read: Ethereum Surges 138% in Institutional Holdings, Hinting at Imminent 2025 Altcoin Rotation