What Will Be the Case for Ethereum (ETH)? Market Maker Company Shares Latest Details

Ethereum (ETH) Attracts Investor Interest Amid Bullish Sentiment

Ethereum (ETH) is gaining momentum as investors shift their focus away from Bitcoin (BTC). Derivatives market indicators suggest strong short-term bullishness for the second-largest cryptocurrency by market capitalization.

Over the weekend, ETH experienced a surge in open interest and implied volatility, indicating increased confidence among derivatives traders. This enthusiasm has translated into a notable price rally, with ETH gaining over 6% in the past 24 hours, reaching a peak of $3,513. Conversely, Bitcoin witnessed a slight 0.5% decline.

Analysts at Wintermute observed a clear shift in favor of ETH in their weekly crypto market update. They noted that "flows over the last few sessions have shifted in favor of ETH, with open interest on exchanges reaching all-time highs over the weekend."

This shift was further evidenced by a significant increase in implied volatility for ETH and a 12-month high in the put-call skew, reflecting a growing preference for upside risk. Wintermute reported that "large blocks over the weekend included December 27 ETH call spreads with strike prices ranging from $3,600 to $5,000." The analysts also observed that recent ETH call contracts were trading at a premium of 8-10 points, which could stimulate hedging activity via 10-25 day risk reversals.

ETH's bullish momentum has positively impacted altcoins, especially ERC20 tokens. Over-the-counter (OTC) demand has escalated, with the Pepe memecoin emerging as a standout performer. Pepe has surged over 54% in the last two weeks, fueled by its increasing popularity in Layer 2 ecosystems.

Please note that this is not investment advice.