Institutional traders maintain long exposure as leverage builds across futures markets.
Ethereum traded around $4,032 on Monday, stabilizing after last week’s sharp correction as renewed inflows and active derivatives trading pointed to improving sentiment across the market. Coinglass data showed $52.4 million in net inflows into ETH spot markets on October 20, reflecting renewed demand from traders seeking exposure after the recent dip.
Futures volume jumped more than 42% in the past 24 hours, while open interest rose 3.7% to $45 billion, suggesting participants are preparing for increased volatility ahead. Ethereum’s price structure remains contained beneath a descending resistance line stretching from September highs, keeping the broader trend cautious despite signs of recovery.
The bounce from $3,600 last week was reinforced by a rising trendline from July, acting as a strong technical base. ETH currently trades above the 20-day exponential moving average at $3,957 and the 50-day EMA at $4,000, while overhead barriers at the 100-EMA ($4,092) and 200-EMA ($4,180) mark the next major resistance zone.
A confirmed close above $4,100 would validate a short-term bullish reversal, setting up targets at $4,300 and $4,500. Immediate support lies at $3,850, where price has found repeated buying interest. A sustained break below that level would likely reopen the path toward $3,600, undoing recent gains.
Momentum indicators offer mixed signals. The Parabolic SAR has turned positive, aligning with the higher lows formed in recent sessions, but the Relative Strength Index remains near neutral levels, suggesting that conviction remains fragile. “Ethereum’s technical positioning shows strength above $3,850, but a clear break above the $4,100 zone is needed to confirm a sustainable recovery,” said one market strategist.
The derivatives landscape reflects cautious optimism. Long-to-short ratios on Binance and OKX remain elevated above 2.0, indicating a heavy tilt toward bullish positioning among top traders. Funding rates remain
