Ethereum traders are rebuilding their bullish exposure to the second-largest cryptocurrency, with derivatives markets showing renewed demand for upside bets.
According to crypto slate According to the data, ETH is up about 11% this month following four consecutive weeks of gains, the longest in almost a year.
This upward trend has pushed ETH to its highest level since February around $2,330, putting it on track for its first consecutive monthly rally since July and August 2025.
As a result, after months of poor performance relative to Bitcoin, ETH’s price performance has returned the market’s attention to the $3,000 level.
Ethereum options trader’s position is $3,200
Deribit, the largest crypto options exchange, has become the clearest expression of the new bull market.
Open interest in ETH call options has built up around the $3,200 strike, with more than $322 million in outstanding contracts, according to trading platform data. A $2,500 strike option follows approximately $320 million in open interest.
A call option gives a trader the right to buy an asset at a set price. Typically, the value increases as the underlying token approaches a strike.
In the case of ETH, the concentration around $2,500 and $3,200 indicates that traders are once again positioning for a move beyond the current recovery range.
On the other hand, high open interest does not necessarily mean that every position is directly a bullish bet. Options activities include hedging, spread trading, volatility strategies, and market maker exposures.
ETH ETF flows record longest streak of inflows this year
The US spot Ethereum exchange-traded fund (ETF) recently sent out one of the strongest demand signals ahead of a rally, but then paused.
Ten funds raised more than $633 million during a 10-day rolling inflow period that began April 9 and ended April 22, according to SoSo Value data. This is the longest continuous inflow this year and the longest since June 2025.
However, the current streak of inflows ended on April 23, when the fund recorded net outflows of $75.94 million, its first negative trading since early April.
Still, the streak of inflows supports the view that regulated investors are returning to exposure to Ethereum after months in which Bitcoin attracted large bids from institutional investors. ETF flows are closely monitored as they represent demand through spot products rather than leveraging positions on derivatives exchanges.
AlphaRactal data confirms this trend, noting that the Ethereum Smart Money Flow Index, a proprietary measure of ETH’s institutional activity, has also shown positive divergence from price for several weeks.
This suggests that demand for funds was improving before the recovery became more pronounced in spot prices.
However, the latest outflow tempers that view by showing that Ethereum has yet to show the kind of ETF-driven consistency that has supported Bitcoin during stronger rallies.
In the case of ETH, the capital flow situation is improving, but it is not yet strong enough to operate a market on its own.
Buyers are gradually returning to the market
Apart from sustained inflows from ETFs, Binance’s order flow data also shows that demand is gradually improving rather than actively accumulating.
According to data from CryptoQuant, the exchange’s Cumulative Volume Delta (CVD) recently hit a positive value of around 48,400. CVD tracks the net difference between purchases and sales. A positive value means that buy orders exceed sell orders.
This suggests that ETH is not rising solely due to increased speculative leverage, but rather because buyers are returning to the market, which is helping to stabilize the token after the initial drop.
On the other hand, the relationship between ETH price and order flow is also strengthening. The correlation coefficient is 0.66, indicating a moderately strong relationship between purchasing activity and price changes.
However, the signal remains measured as ETH is still trading below its previous high and CVD measurements do not indicate the type of strong spot accumulation typically associated with a confirmed breakout. Instead, it refers to the balancing phase after a gentle stretch.
Therefore, whether ETH’s upward trend continues depends on whether order flow continues to improve.
Strong CVD numbers would support the case that spot buyers are validating the movement indicated by options and ETFs. If it stalls, the rally will become even more exposed to speculative positions.
ETH leverage is increasing
Despite these bullish indicators, Binance’s CryptoQuant data points to the main sources of risk behind the ETH rally.
The exchange’s leverage ratio exceeded price for the first time in months. If leverage grows faster than the spot price rises, it indicates that traders are adding borrowing exposure faster than investors can buy the tokens outright.
This pattern can appear early in a recovery when traders attempt to take positions ahead of a breakout, before spot flows have fully confirmed their move.
Notably, this could support rapid gains while market conditions remain favorable. It can also increase the risk of being forced to sell if prices reverse.
However, a leveraged position will be more sensitive to movements against it. If ETH fails to maintain its recent gains, long positions could be liquidated, adding selling pressure to the decline.
This leverage signal counters a more constructive set of indicators. Ethereum has posted its fourth straight weekly gain, Deribit traders are eyeing higher strikes, ETFs have recently recorded 10 consecutive days of inflows, and CVD shows buy orders are outpacing sell orders.
However, there is a risk that these signals are not moving at the same speed.
This is because these differences will need to close for ETH to move towards $3,200. Spot buyers need to keep absorbing supply, ETF flows need to stabilize, and leverage needs to stop it from rising more than the price.
Without that confirmation, exposure to the same derivatives that support the rebound can magnify losses in the event of a failed breakout.
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