What Will Be the Case for Ethereum (ETH)? Market Maker Company Shares

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Ethereum (ETH) is attracting investor attention as capital flows shift away from Bitcoin (BTC), with derivatives market activity indicating strong near- term bullish sentiment for the second- largest cryptocurrency by market cap.

Over the weekend, ETH saw an increase in open interest alongside increased implied volatility, indicating growing confidence among derivatives traders. This momentum has translated into a significant price rally, with ETH gaining over 6% in the past 24 hours to trade at a peak of $3,513. In contrast, Bitcoin saw a modest 0.5% decline.

Wintermute analysts highlighted a clear shift in favor of ETH in their weekly crypto market update. "Flows over the last few sessions have shifted in favor of ETH, with open interest on exchanges reaching all- time highs over the weekend," the firm said.

This shift was evident by a sharp

increase in implied volatility for ETH

and a 12-month high in the put-call

skew, reflecting a growing preference

for upside risk. "Large blocks over the

weekend included December 27 ETH

call spreads with strike prices ranging

from $3,600 to $5,000,” Wintermute

reported. The analysts also noted that

recent ETH call contracts were trading

at a premium of 8-10 points, which

could fuel hedging activity via 10-25

day risk reversals.

ETH's bullish momentum has spilled over to altcoins, particularly ERC20

tokens. Over-the-counter (OTC)

demand has surged, with the Pepe

memecoin emerging as a standout

performer. Pepe has gained over 54%

in the past two weeks, driven by its

growing popularity in Layer 2 ecosystems.