Ethereum Eyes $6,000 Rally Despite Network Revenue Concerns: Technical Analysis
Ethereum (ETH) is trading above $3,600 right now, which is a rise of almost 7% in the last 24 hours. This is a sign that the second-largest
Quick overview
- Ethereum is currently trading above $3,600, marking a 7% increase in the last 24 hours.
- Bullish signals in the derivatives market indicate strong institutional interest, with a significant majority of options betting on price increases.
- The upcoming Fusaka upgrade on December 3rd is expected to enhance Ethereum's scalability and efficiency, potentially driving demand.
- Analysts predict that Ethereum could reach $6,000 by the end of the year if it breaks key resistance levels and capitalizes on positive market momentum.
Ethereum ETH/USD is trading above $3,600 right now, which is a rise of almost 7% in the last 24 hours. This is a sign that the second-largest cryptocurrency by market capitalization is getting stronger again. Even while it is still 28% below its all-time high of $4,946, a mix of bullish derivatives positioning, whale accumulation, and an imminent network upgrade is making some hopeful that it could reach $6,000 by the end of the year.
ETH Derivatives Markets Flash Strong Bullish Signals
The futures and options markets for Ethereum are very positive. Total open interest in futures has grown to about $40.11 billion across all exchanges, which is almost 11.5 million ETH in total exposure. Binance has the most open interest at $8.15 billion, while CME is close behind with $7.57 billion. This shows that more institutions are getting involved in the ETH market.
The options market tells an even better story. Calls make up 65.05% of all open interest right now, while puts only make up 34.95%. There are almost 2.1 million ETH in call options and 1.13 million ETH in puts. This skew shows that traders are betting heavily on price increases instead of protecting themselves against price drops.
The most popular contracts on Deribit, the biggest crypto options exchange, are call options for December 2025 with strike prices of $6,000, $5,000, and $4,000. This shows that people are very sure that the value of these options will go up in the future. The peak pain point, when the most options lose value, is between $3,300 and $3,600. This means that a short-term consolidation around the mid-$3,000s is likely to happen before a big breakout.
ETH/USD Technical Setup Suggests V-Shaped Recovery Pattern
From a technical point of view, Ethereum is starting to look like it is going through a traditional V-shaped recovery after dropping to $3,098 in early November. ETH started the month at $3,856 and briefly threatened to drop below $3,000 on November 4. However, it quickly bounced back and rose above the 200-day Simple Moving Average of $3,335.
Trader Tardigrade, a technical expert, has found a bullish pattern that has happened before large upward advances in the past. $3,572 is the most important level to watch. If this resistance turns into support, it might mean that ETH is ready to attack the 50-day SMA at $3,981 and maybe even rise above $4,000.
The current long/short ratio of 2.8 demonstrates that only 26.3% of traders are betting against ETH, further bolstering the bullish argument. Big players are paying attention. Justin Sun staked 45,000 ETH worth $154.5 million on November 5th, and the next day, Fundstrat’s Tom Lee bought $70 million worth of ETH.
Ethereum Gas Fee Paradox: Boon for Users, Concern for Network Economics
Traders are happy about the recent price movement, but Ethereum has a fundamental problem that could affect its long-term value. Network gas fees have dropped to record lows of only 0.067 Gwei. The average swap costs only $0.11, and NFT sales cost $0.19.
This is a huge change from the bull run in 2021, when transaction fees may go over $150 during times of high traffic. The drop in fees—down 99% since the March 2024 Dencun upgrade—has made it much harder for Ethereum to make money. Critics say that these low fees won’t last and will cause problems with both money and security because validators have less reason to protect the network when they don’t make as much money.
The main problem is Ethereum’s scalability plan, which depends a lot on Layer 2 networks. These L2 solutions help Ethereum compete with newer high-throughput networks, but they also take money away from the foundation layer, which creates competition within the Ethereum ecosystem.
Fusaka Upgrade Could Be the Catalyst
The Fusaka network update, which is set for December 3rd, could help with some of these issues and be the reason why ETH goes up again. The upgrade adds big architectural changes that are meant to fix Ethereum’s problems with scalability and efficiency.
Experts in the field say that Fusaka will let Ethereum Layer 2 networks like Base handle tens of thousands of transactions per second. This huge boost in throughput could make Ethereum much more appealing to application developers and regular users, which could lead to increasing demand for ETH even while the basic layer is having trouble making money.
Ethereum Price Prediction: $6,000 Target Appears Within Reach
Analysts think that ETH might hit $6,000 before the end of the year, which would be around 67% higher than where it is now. They base this on technical indicators, derivatives positioning, and the Fusaka upgrade catalyst.
The way to get to this goal is probably through:
- Breaking through and holding above the $3,572 resistance level
- Reclaiming the 50-day SMA at $3,981
- Overcoming psychological resistance at $4,000
- Riding momentum from the December 3rd Fusaka upgrade toward $6,000
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