Recent data indicates that Ether futures are displaying stronger bullish sentiment compared to Bitcoin. The futures and options market is increasingly supporting Ether, suggesting a potential shift in investor focus during May 2025.
While Bitcoin has shown gains this year, Ether experienced a drop. However, options data from Deribit reveal a stronger bullish positioning for Ether relative to Bitcoin. This suggests traders are more optimistic about ETH's potential compared to BTC.
Ether's open interest has jumped significantly, with one-month Ether futures boasting a higher annualized premium than Bitcoin futures. Annualized funding rates for Ether perpetual futures have also surpassed those of Bitcoin, reinforcing the bullish outlook on ETH.
These trends suggest a growing confidence in Ether's potential, even as it remains below its record highs from the 2021 bull run. The shift in sentiment could indicate a change in market dynamics as investors and traders adjust their positions.
According to Coinglass, ETH open interest has increased, setting a new all-time high, while trading volume jumped nearly 40%.
Retail traders appear to be targeting the $3,000 level by the end of the month, while institutions have set their sights slightly higher at $3,500 by the end of June.
The bullish move could surpass the 78.60% Fibonacci level at $3,436. Optimistically, this opens the door to reaching the 100% Fibonacci level near the psychological $4,000 mark.
On the downside, critical support remains at the 38.20% Fibonacci level, followed by the 100-day EMA at $2,259.