Ethereum (ETH) has surged 41% in the last month, reaching a price of $4,349, its highest since December 2021. Despite this impressive performance, derivatives data indicates that traders remain cautious rather than bullish. Institutional investment has been strong, with significant inflows into ether exchange-traded funds (ETFs) and large corporations increasing their ETH reserves. However, overall sentiment in the options market remains neutral, as evidenced by a delta skew of -3%, signifying that traders are neither aggressively bullish nor expecting a price drop below $4,000. One major risk to further gains is the potential for a recession, which could hamper global economic growth. Nonetheless, if institutional interest continues and companies keep expanding their Ethereum holdings, ETH could outperform the broader cryptocurrency market in the future. The article stresses that while current derivatives readings appear neutral, macroeconomic conditions will play a vital role in determining ETH's trajectory.

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