Ether (eth), the second-largest cryptocurrency by market cap ranking, recently soared from around $3,000 earlier this month to $3,500 for the first time this year before losing some of its momentum.
In a recent <a target="_blank" href="https://learn.bybit.com/crypto-insight/bybit-x-block-scholes-crypto-derivatives-analytics-report-jan-15-2025/” data-wpel-link=”external” target=”_blank”>published In the crypto derivatives report, Bybit and research firm Block Scholes highlighted several factors, including macroeconomic developments and trading signals from spot and futures market metrics, that could give eth the much-needed boost to regain levels. of higher prices.
What could drive the rise of eth?
Perpetual swap funding rates have fluctuated in line with spot prices, while maintaining a positive record for most of this month, especially for eth. The Bybit report explains that this translates into “strong demand for long positions in the contract despite the slowdown, or at least a lack of interest in short positions, due to liquidations or other factors.”
Furthermore, the crypto options market reflects a combination of short-term caution and long-term optimism. Due to the uncertainty, traders are hedging against potential short-term price declines. However, they remain optimistic about the market's long-term prospects, as evidenced by the bullish bias in longer-term options contracts.
Additionally, recent Consumer Price Index (CPI) data sparked a shift in market structure as btc, eth, and many altcoins headed north. The bullish volatility smile indicates increased speculation and betting on possible upward price trends.
Meanwhile, news about the upcoming inauguration of pro-crypto president-elect Donald Trump has recently fueled the market's bullish trend. Pleasingly, the crypto community is eagerly awaiting a new United States with less strict cryptocurrency trading and investment laws.
Investors have therefore turned their attention to digital assets, primarily eth and btc, as they have struggled to gain regulatory clarity on these assets in recent years and have survived various wavering market conditions.
More Altcoins to record bullish trends
Like eth, some altcoins have also recently shown bullish momentum. These include SOL, XRP, LTC and others. With
Meanwhile, SOL became the biggest beneficiary of the TRUMP-induced price rally and soared to a new all-time high of nearly $300 at press time.
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