Bitcoin's rally to a new all-time high impacted the broader crypto market, elevating various altcoins including Ethereum.
Among the main beneficiaries is Ethereum (ETH), which advanced over 3% in the last 24 hours, driven by renewed positive sentiment and increased futures market activity.
Ethereum futures market signals recovery
Demand for long positions in ETH has surpassed shorts for the first time in 11 days, marking a significant shift in traders' positioning. According to Coinglass, the ETH long/short ratio has exceeded 1, indicating that more market participants are betting on a rise. At the time of this report, this ratio stands at 1.0048.
ETH Long/Short Ratio. Source: Coinglass
The long/short ratio measures the proportion of bullish (long) positions versus bearish (short) positions in the market. When this index is below 1, it means more traders are betting on a price decline than on an appreciation.
On the other hand, as in the case of ETH, when the ratio exceeds 1, there is a predominance of long positions over shorts. This indicates positive sentiment, with most investors expecting the value of the altcoin to rise in the short term.
Additionally, on the daily chart, the increasing balance volume of ETH confirms the resurgence of demand for the altcoin. At the time of this report, this key momentum indicator stands at 25.60 million.
Ethereum OBV. Source: TradingView
On-Balance Volume (OBV) is a technical indicator that measures the accumulated buying and selling pressure, adding volume on up days and subtracting on down days. When the OBV is rising, it suggests a significant increase in trading volume in line with price movement. This indicates a growing conviction behind ETH's positive trend.
This optimistic outlook is reinforced by expectations surrounding upcoming Ethereum protocol updates and growing institutional interest. In an interview with BeInCrypto, Lennix Lai, global commercial director of OKX, highlighted that despite the U.S. SEC's delays in decisions regarding Ethereum staking ETFs, the sentiment around the leading altcoin remains strong and could support new highs.
“… even with the SEC's delays on ETH staking ETFs, the Ethereum narrative is clearly gaining strength, potentially driven by expectations around upcoming updates (for example, Fusaka) and positive news from TradFi institutions developing Ethereum L2 solutions for RWA tokenization,” Lai noted.
Lai also commented that, on the exchange:
“… ETH now represents nearly 27% of spot volume, surpassing Bitcoin's 26.5%, completely reversing the dynamics of April when BTC dominated with 38% and Ethereum stayed below 20%. This indicates a distinct rotation as traders reposition themselves while Bitcoin consolidates near all-time highs, despite BTC recently hitting a new record of $110,730.”
He described this change as 'quite interesting.'
Ethereum remains strong above the 20-day EMA
At the time of this report, ETH is trading above its 20-day exponential moving average (EMA), confirming the positive outlook. This technical indicator considers the asset's price over the last 20 trading sessions, giving more weight to the most recent values.
When the asset remains above the 20-day EMA, it signals a favorable short-term trend and suggests that buyers remain in control. This behavior reinforces ETH's current strength and establishes a dynamic support level at $2,369.
If the upward movement intensifies, ETH could advance to $2,745.
Ethereum Price Analysis. Source: TradingView
However, if selling pressure increases again, this positive outlook will be invalidated. In that case, the price of ETH could retreat to $2,424.
The article Ethereum (ETH) Forecast: What to Expect from the Coin Today? was first seen on BeInCrypto Brazil.
