Ethereum hits $1,973 after Fed pause, breaking key $1,845 resistance.
ETH Open Interest jumps to $21.35B; options volume up 40%.
Vitalik’s upgrade plan boosts long-term ETH scalability and confidence.
Ethereum broke past the $1845 levels following the Federal Reserve’s decision to halt the rise in interest rates on May 7. The decision reinforced general risk-on mood in the global markets, which in turn was followed by the revitalization of upward price tendencies in Ethereum’s price.
As investor demand increased, ETH gained 0.4% intraday, triggering a break above key resistance. The rally aligned with easing Treasury yields and heightened interest in decentralized assets. Market analysts have now shifted their short-term focus toward the $1,950 price range, a level last observed in mid-March.
Derivatives Metrics Signal Continued Bullish Engagement
Ethereum’s derivatives market activity has risen in tandem with its spot price action. According to data from Coinglass, Ethereum’s Open Interest surged by 2.65% to reach $21.35 billion. This increase reflects the injection of approximately $400 million in fresh capital. Options trading activity followed suit, with volumes rising over 40% to $594.76 million. Options Open Interest climbed 4.84%, landing at $4.19 billion.
Additionally, long positions currently outnumber shorts across major exchanges. Binance and OKX report long-short ratios above 2.1, showing a firm tilt toward bullish positioning. Among top traders on Binance, the ratio exceeds 2.8.
Short liquidations in the past 12 hours amounted to over $6 million, further indicating that many traders were caught offside by the recent price move. The momentum could carry Ethereum toward the $1,950 and $2,050 zones if volume and macro indicators remain supportive.
Fed Pause Lifts Market Sentiment While ETH Holds Ground
The most recent rate decision by the Federal Open Market Committee indicated that the federal funds rate will still be 4.25 to 4.50%. The move was viewed as a dovish signal by participants in the market, especially given that the Fed also decided to taper its balance sheet reduction plan.
Ethereum responded to the announcement with a measured uptick, supported by improved investor sentiment and reduced selling pressure. On-chain data showed a decrease in Age Consumed and stronger exchange outflows, reflecting increased holder confidence.
The ongoing stability in macroeconomic indicators helped Ethereum sustain levels above $1,845. The broader cryptocurrency market also saw similar responses, though Ethereum stood out due to additional support from network development updates. ETH now trades close to $1,973, with technical structures pointing to a potential push toward $1,950 in the short term.
Vitalik’s Proposal Add Long-Term Support
Ethereum’s upward momentum has been reinforced by co-founder Vitalik Buterin’s recent upgrade proposal. The plan introduces improvements in node efficiency and stateless client integration.
The includes strategies such as witness compression and modular execution layers to improve scalability and decentralization. This announcement came shortly before the Fed’s policy update and added confidence to Ethereum’s long-term utility and performance.
