🌟Key Points
The ETH coin briefly reached $4,300 before retreating to $4,270 amid profit-taking.
The $4,400 level remains the next major bullish target, supported by short gamma positions in the options markets.
Strong open interest and high funding rates indicate bullish momentum but increase the risk of a liquidation cascade.
On-chain data shows a slowdown in whale accumulation near $4,300 as sellers defend the key resistance.
The value of Ethereum (ETH) rose to $4,300 early Saturday before retreating to $4,270, as traders took profits after a week-long rally driven by derivative positions and overall strength in the cryptocurrency market. This move represents the highest price for Ethereum since March 2024, and comes amid increasing speculation about a potential 'rapid' rise to $4,400.
According to Amberdata, the net gamma exposure for traders in the ETH options market listed on Deribit remains negative between $4,000 and $4,400. This setup forces market makers to buy ETH as its price rises to hedge exposure – a feedback loop that could accelerate upward moves. The gamma index turns positive near $4,400, making this level a 'price magnet' for traders.
🌟Key Resistance and Support Levels
Immediate Resistance: $4,300 (psychological level) and $4,320–$4,340 (seller concentration area).
Major Resistance: $4,400, where the gamma index for the options market turns positive and selling activity may intensify.
Support Levels: $4,250 (short-term low) and $4,180 (recent consolidation area).
Collapse Risk: A drop below $4,150 could trigger long liquidations towards the $4,000 level.
🌟Futures and Derivatives Forecast
Open Interest: Open interest in ETH futures on major exchanges has reached its highest level in several months, indicating the building of a leveraged position.
Funding Rates: Remain positive and above the quarterly average, indicating long-term dominance but also risks of higher pressure.
Options Setup: The tight range between $4,000 to $4,400 creates conditions for amplified moves if momentum continues.
Chain and Supply Dynamics
Exchange Flows: Whale deposits have risen slightly at $4,300, suggesting potential distribution.
Supply Storage: More than 27% of ETH supply remains stored, reducing immediate selling pressure.
Network Activity: Gas usage is stable, with DeFi protocols accounting for the majority of transaction fees.
Market Context and Next Steps
Ethereum's performance tracks the CoinDesk 20 index, which rose by 4.5% over the past twenty-four hours, along with increasing risk appetite in the broader cryptocurrency market. The bullish outlook relies on Ethereum remaining above $4,250, allowing derivatives dynamics to advance towards the $4,400 barrier.
However, if sellers curb price movement and profit-taking increases, a pullback towards the $4,180–$4,200 level may occur before any new breakout attempt. Traders are monitoring options flow confirmations, immediate demand, and whale positions before committing to strong bullish bets.
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