Ethereum has regained key price levels after a volatile weekend, emerging as one of the best performers in the ongoing market rally. Altcoins are gaining momentum as Bitcoin stabilizes around $100,000, with ETH once again leading the way. The recovery comes amid renewed optimism across the cryptocurrency sector as traders and investors brace for potential upside after weeks of corrections and fear-based selling.
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Ethereum trading volume on Binance has reached an all-time high, highlighting the speculative nature of the current market, according to a CryptoQuant report by analyst Dirkforst. The report notes that speculation is currently playing a much larger role than in previous cycles, and trading activity is at unprecedented levels.
In contrast to past bull phases, where spot market activity dominated and provided a healthier basis for growth, today’s rally appears to be largely driven by leverage and short-term speculation. This change made the market more volatile and less stable, even as prices recovered.
Ethereum trading activity reaches unprecedented levels, speculation prevailing
According to CryptoQuant analyst Darkfost, the Ethereum market is now more driven by speculation than ever before, as traders seek quick profits over sustainable growth. This change in behavior has made the trading environment much more volatile, with volatility and leverage increasingly shaping price movements.
Data shows that both trading volume and open interest across centralized exchanges (CeX) have reached historic highs. Binance estimates that Ethereum trading volume will already exceed $6 trillion in 2025, which is about two to three times more than in previous years.
Other major exchanges have shown similar patterns, but Binance still significantly dominates market activity, underscoring its position as the leading venue for speculative ETH trading.
Open interest levels also tell an amazing story. In August 2025, ETH open interest on Binance exceeded $12.5 billion. This is a staggering 5x increase compared to the all-time high of $2.5 billion in November 2021. This explosion in leveraged positions highlights the extent to which Ethereum trading has evolved into a highly speculative environment dominated by short-term positions.
Taken together, these trends reveal a market structure that is increasingly reliant on derivatives rather than spot purchases. As Dirkforst points out, the intensity of speculation in this cycle has made Ethereum price movements much more fragile and reactive, explaining the frequent sharp fluctuations and increased sensitivity to changes in liquidity that currently define the ETH market.
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Testing the resistance of a key after a sudden selloff
Ethereum (ETH) is showing early signs of recovery from last week’s plunge, with the price rebounding from lows around $3,200 and trading around $3,590 at the time of writing. The rally follows a strong response from buyers after several days of strong selling pressure and signals renewed confidence in the market.
From a technical perspective, ETH’s recent rally suggests that short-term momentum may be shifting back to the bulls. Although the daily chart shows a clear structure with higher lows forming, Ethereum still faces immediate resistance near the $3,650 to $3,700 zone, which is consistent with the previous consolidation area before the breakdown. A decisive close above this level could open the door for a rally to $3,850-$3,900, but failure to break above this level could result in continued consolidation.
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Volume analysis also shows that the recent pullback was accompanied by increased buying activity, confirming that the $3,200 area is acting as a strong demand zone. However, the overall trading situation remains fragile, volatility remains elevated and speculative activity dominates the market.
Featured image from ChatGPT, chart from TradingView.com