Ether markets demonstrated heightened volatility during Sunday’s session as spot prices fluctuated between $3,971 and $4,031, ultimately stabilizing near the $4,014 level. The derivatives market revealed significant positioning shifts, with exchange open interest for Ethereum futures reaching multi-month highs according to Coinglass data. Market structure analysis indicates substantial concentration in December call options, suggesting traders are positioning for potential upward momentum through year-end. The current options flow reveals a notable divergence between short-term put activity and longer-dated call accumulation, creating a complex derivatives landscape. Open interest metrics show substantial growth compared to early summer levels, reflecting renewed institutional and retail participation in Ethereum derivatives. The $4,000 psychological level continues to serve as a critical technical and psychological threshold for market participants, with options positioning indicating this level may determine near-term directional bias. Market makers are actively managing risk exposure around these key strike prices as volatility expectations remain elevated heading into the final month of quarterly derivatives expiration cycles.
