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▲ Ethereum (ETH)/ChatGPT Generated Image ©
As news of a ceasefire between the US and Iran spread, an enormous $2.2 billion in buying funds has poured into the Ethereum derivatives market, the second-largest cryptocurrency by market capitalization, leading to a strong price rally.
According to investment media FXStreet on April 11 (local time), virtual asset analysis firm CryptoQuant diagnosed that Ethereum (ETH)'s key on-chain indicators significantly improved after the ceasefire announcement between the US and Iran last Tuesday. Ethereum surged over 6% within 24 hours immediately after the ceasefire news, marking its highest daily increase in about a month, and dollar-denominated open interest soared by $2.2 billion, reaching levels seen approximately a month ago.
Notably, coin-denominated open interest also significantly increased. Analysts interpreted this not as a simple short squeeze (buying pressure occurring to liquidate or cover short positions) but as a result of traders massively building new long positions. Indeed, the taker buy-sell ratio showed a continuous upward curve, proving that buyers are dominating the perpetual futures market. A similar trend was observed among Bitcoin (BTC) traders, confirming strong expectations for short-term macroeconomic environment improvement.
The Coinbase Premium Index, a key indicator for gauging institutional investor demand within the US, also turned positive, sending a bullish signal. CryptoQuant predicted that if the ceasefire holds and there is no further escalation news for the next two weeks, the Coinbase Premium will continue its positive trend, solidifying a bullish trajectory. Driven by this strong buying pressure, a total of $54.4 million worth of positions, including $34.5 million in short positions, were liquidated over the past 24 hours, according to CoinGlass data.
From a technical analysis perspective, Ethereum is also demonstrating robust support. Currently trading around $2234, Ethereum is maintaining a stable trend above its 20-day exponential moving average (EMA) of $2128 and 50-day EMA of $2156, attracting buying interest at lower prices. The Relative Strength Index (RSI) is also hovering around 61, supporting positive momentum, but the Stochastic Oscillator has entered the overbought zone, suggesting the possibility of a short-term consolidation phase.
Should Ethereum decline in the future, the primary support level is $2210, followed by $2156, $2128, and $2108 acting as successive defensive barriers. If these support zones break, there is a risk of a fall to $1909 and $1741. Conversely, if the upward rally continues and decisively breaks through the strong resistance level of $2388, coinciding with the 100-day EMA, it is expected to embark on an upward trajectory towards $2746.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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