Ethereum derivatives trading has reached unprecedented levels with open interest (OI) on the Chicago Mercantile Exchange (CME) hitting a record $7.85 billion. This surge in institutional investment signals robust confidence in ETH’s long-term prospects amid growing cryptocurrency market sophistication.
Technical indicators, however, suggest caution for short-term traders. The Relative Strength Index (RSI) currently stands at 69.97, approaching the overbought threshold of 70 that historically precedes price corrections. Meanwhile, the Average Directional Index (ADX) confirms enduring bullish momentum while simultaneously highlighting vulnerability to potential pullbacks.
Substantial whale accumulation counters correction concerns as 170 major addresses collectively acquired over 1.7 million ETH in recent holdings expansions. This whale activity coincides with substantial inflows into spot Ethereum exchange-traded funds (ETFs), which recorded $452 million of new capital, reinforcing underlying bullish sentiment across institutional and large-scale investor segments.