Ethereum News Today: Ethereum Surges 20% This Week Driven by Derivatives Market

Ethereum has seen a significant surge in value this week, with its price climbing over 20% in the past seven days and surpassing $3,600 for the first time in months. As of the latest update, ETH is trading at $3,617, reflecting a 5.4% increase within the past 24 hours. This rally has caught the attention of analysts who are scrutinizing whether the price movement is driven by sustainable investor demand or short-term speculative activity.

Data from an on-chain analytics firm suggests that the recent upward trend in Ethereum’s price is primarily driven by the derivatives market. While ETH continues to rise, the underlying momentum appears to be fueled by leverage-heavy futures positions rather than sustained buying in the spot market. This raises questions about the durability of the current rally and whether follow-through demand from spot buyers will emerge. The Ethereum Futures Volume Bubble Map indicates an overheated state in specific zones, marked by surging volumes that coincide with ETH’s price gains, implying that leveraged positions are largely responsible for the rise.

In contrast, the spot market data shows relative stability, with no equivalent spike in volume, suggesting that buying pressure from traditional investors has yet to catch up. The analyst also pointed out that Ethereum’s Open Interest (OI) in futures has reached new all-time highs, which strengthens the idea that the current movement is speculative in nature. The question moving forward is whether momentum from the derivatives market will eventually be matched by genuine spot market demand. If such demand materializes, it could contribute to broader altcoin market activity.

In a separate insight, another analyst noted increasing signs of institutional participation in Ethereum accumulation. ETH is trading at a premium on a platform frequently used by large investors, indicating heightened buying interest from whales. The premium, described as rare in recent times, aligns with a broader trend of capital inflows into Ethereum-focused spot ETFs, which have recently reached record daily highs. While current metrics do not indicate overheating, investors should remain aware of potential risks should the strong upward activity repeat in the second half of 2025. For now, the combination of rising institutional demand and growing ETF allocations may provide structural support for Ethereum, especially if the spot market begins to reinforce the momentum sparked in the futures space.