Rekt Finance highlighted Ethereum future investment possibilities

Crypto analysis (Ethereum)

Ethereum long-term holders could play major role in ETH's price movement in coming weeks

Top crypto analysts believe that Ethereum might soon experience a bullish breakout. In a recent discussion, Rekt Finance pointed out that Ethereum's open interest in the futures market is increasing, indicating growing institutional demand ahead of the anticipated ETF approval.

Rekt Finance also highlighted that Ethereum is a deflationary asset, meaning its supply has been steadily decreasing over time. This characteristic can make it more valuable, as fewer coins are available in the market.

He predicts that after the ETF approval, Ethereum's price will likely rise. However, there may be a period of consolidation or pullback as holders of the Grayscale Ethereum Fund look for cheaper alternatives. After this phase, Ethereum is expected to continue its upward trend.

Ethereum price analysis:

Ethereum traded around $3,390 on Friday, down 2% in 24 hours. About $24.84 million in liquidations occurred, with 81% being long positions and 19% short positions.

Over 1.04 million Ethereum options expired, with a Put/Call Ratio of 0.59 and a Max Pain point of $3,100. The total value was $3.6 billion. Options let you buy or sell assets at specific prices on certain dates.

Ethereum chart analysis

Despite expectations of high volatility due to these expiries, Ethereum's price stayed relatively stable, reflecting its low implied volatility (IV), below 60%.

Greekslive suggested buying call options since IV is low. The Put/Call Ratio on Deribit dropped to 0.27, indicating bullish sentiment, especially with the potential launch of spot Ethereum ETFs. The $4,000 price is significant because of many call options at that level.

Ethereum is expected to trend sideways over the weekend but may gain as ETF news spreads. It needs to break the $3,629 resistance level, which it hasn't surpassed in three weeks, to potentially rise over 18% and test $4,093, possibly reaching a new yearly high. The $3,203 level is crucial support; falling below it could lead to a major price drop.