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The forecasts for Ethereum towards $5000: derivative data signals a rally after the Dencun update

Finally, the Dencun update has arrived, traders and analysts are in excitement with the predictions and all signals indicate a significant surge in the price of Ethereum. 

The culmination of EIP-4844, nicknamed “protodanksharding”, promises to revolutionize the Ethereum ecosystem by drastically reducing transaction costs on layer 2.

Although this data alone sets the stage for a bullish trajectory, it is the data on derivatives that provides further validation of the imminent rally in Ethereum prices.

The Dencun update of Ethereum brings positive price forecasts

The derivatives markets are in full swing, with Ethereum futures experiencing an unprecedented surge in open interest (OI), reaching a record high of 14 billion dollars.

The main exchanges like Binance, Bybit, and OKX have recorded significant jumps, indicating a widespread bullish sentiment among traders. 

In particular, institutional investors are also joining the fray, as evidenced by the 5-6% increase in ETH OI on platforms such as CME and Deribit.

At the same time, the OI of options on Ethereum has reached new highs, reaching 14.77 billion dollars, with call options dominating the landscape at 65.87%.

The data from Deribit reveals a put-call ratio of 0.65, with options traders positioning themselves favorably after the Dencun update.

Noteworthy are the staggering volumes of call options, with traders betting heavily on the rise of Ethereum. 

Call options for strike prices of 4500 and 5000 dollars before March 29 have attracted significant attention, highlighting the bullish prospects of the market.

Even analysts are echoing this optimism, and forecasts of an ETH price exceeding the $5000 threshold are gaining ground. 

Ali Martinez, an important cryptocurrency analyst, highlights a massive influx of about 83 billion dollars in the cryptocurrency market, with Bitcoin and Ethereum leading the way.

Institutional interest in Ethereum

This influx of capital, combined with the upcoming launch of an Ethereum ETF, signals a growing institutional interest in Ethereum, pushing its price higher despite the declining odds of ETF approval.

Michael van de Poppe, esteemed trader and analyst, states that it is only a matter of time before Ethereum embarks on its next upward trajectory. 

Advise traders to monitor the chart of the ETH/BTC pair to confirm another altcoin rally while the price of Bitcoin stabilizes. 

Van de Poppe identifies a critical resistance level near $4550, suggesting that a breakthrough could propel Ethereum towards the coveted $5000 threshold.

Right in the midst of this fervor, the price of Ethereum has already started its ascent, recording a gain of 1% in the last 24 hours. 

Currently trading at $4,056, Ethereum’s price trajectory reflects growing investor confidence, with a 24-hour trading volume seeing a significant 20% increase. 

These indicators suggest a renewed interest from traders and investors, laying the foundation for Ethereum to rise to $5,000 after the Dencun update.

In conclusion, Ethereum’s journey towards $5000 seems imminent, fueled by a convergence of bullish fundamentals and solid derivative data. 

The Dencun update promises to unlock new possibilities for Ethereum, making it more scalable and cost-effective, thus attracting both retail and institutional investors. 

As analysts and traders prepare for the next Ethereum rally, all eyes are on the charts, waiting for the prophecy of Ethereum reaching $5000 to come true.