Ethereum futures are currently trading at $3,557, with bullish traders aiming for $4,000. The analysis shows that Ethereum remains strong despite the ups and downs of the broader market. The Point of Control (POC) stands at around $1,550, indicating solid technical support. A bullish breakout in April 2025 led to a 15% price increase, reinforcing the upward trend. A megaphone pattern suggests there could be more volatility and possible bear traps ahead. The current bullish trend is evident in an upward-sloping regression trend channel. Traders should be careful when considering short positions, and only experienced scalpers should think about them. Immediate price targets are $3,765 and $3,840-$3,850, with a key psychological target at $4,000. Traders who entered long positions near $1,800 might consider taking profits at $3,750-$3,850. Ethereum futures are aiming for a breakthrough over $4,000, potentially challenging previous all-time highs. It’s important to keep an eye on the resistance levels and manage positions wisely. Stay updated with thorough market analysis for safer trading. According to our analysis, shorting Ethereum futures is a risky move. The market’s strength, despite negative news in traditional equity markets, indicates a solid underlying demand. Derivative traders should follow this clear bullish trend instead of opposing it. We are witnessing a notable rise in call option buying on platforms like Deribit, with the call-to-put ratio recently reaching a six-month high. This shows that savvy traders are gearing up for a move toward the $4,000 strike price, making long call positions or bull call spreads appealing. These strategies provide a defined risk while aiming to capture potential gains. Selling cash-secured puts with strike prices well below the current market, possibly near the lower end of the regression channel, could also be a smart strategy. This allows traders to collect premiums while maintaining a bullish-to-neutral stance. The data indicates that implied volatility is high because of the megaphone pattern, making premiums for selling puts more attractive than usual. Additionally, open interest in CME ETH futures has increased by over 20% in the last quarter, showing more institutional involvement. This isn’t just retail enthusiasm; major players are building positions, providing better liquidity and support for the trend. Historically, such growth in institutional interest often leads to sustained price increases, similar to late 2020. The fundamental on-chain data backs this view, as the amount of ETH staked has now surpassed 30% of the total supply, a new record. This significantly limits the liquid supply on exchanges, which could lead to a supply shock. Thus, any rise in demand is likely to have a major impact on prices. Given the identified megaphone pattern, traders should prepare for increased volatility and the possibility of sharp, brief declines. Using leveraged positions requires caution, and it may be wise to hedge long futures with long-dated put options to shield against a sudden trend breakdown. This strategy allows for participation in potential gains while managing the risk of a quick price reversal.

here to set up a live account on VT Markets now