ether.fi [ETHFI] eyes $0.40 next after an 11% rally – More gains ahead IF…

$ETHFI is experiencing strong upward momentum. Since holding the $0.30 support earlier this week, the altcoin has posted consecutive higher highs, touching a local high of $0.38.

As of this writing, ether.fi [$ETHFI] traded at $0.37, up 11.24% on the daily charts. At the same time, trading volume rose 72% to $58 million, while market cap climbed 12% to $346 million.

With the latest rally, the altcoin reclaimed the 20- and 50-day Exponential Moving Averages (EMAs) at $0.34 and $0.36, indicating strengthening upside momentum.

Why is THIS demand improving？

As June came to an end, ether.fi sellers showed signs of exhaustion after dominating the market during the final week of the month. That shift allowed buyers to defend the $0.30 support successfully.

Since then, buyers have outpaced sellers. According to CoinGlass data, Spot Netflow remained negative for four consecutive days.

Source: CoinGlass

At press time, Spot Netflow stood at -$188k, improving from -$492k the previous day.

A sustained period of negative Spot Netflow suggested demand remained strong across the market. Historically, stronger Spot demand has supported better price performance.

In fact, momentum strengthened further over the past day.

Source: TradingView

The Directional Movement Index (DMI) formed a bullish crossover, with the positive index climbing to 26.

Meanwhile, the negative index dropped to 15, while the Average Directional Index (ADX) rose to 19. That setup indicated strengthening bullish momentum as selling pressure weakened.

If buyers maintain control, $ETHFI could reclaim the 100-day Exponential Moving Average (EMA) near $0.40.

Why are derivatives traders staying cautious？

While the Spot market showed strong demand, derivatives traders continued to reduce exposure.

For starters, Futures Average Order Size data from CryptoQuant showed whales remained active throughout the recent downturn.

Source: CryptoQuant

Large orders suggested whales continued participating in the Futures market. However, selling pressure remained elevated.

Over the past week, $59 million worth of Futures positions closed, while $338 million flowed out over the last month.

Source: CoinGlass

The same trend appeared in perpetual Futures.

Perpetual sell volume climbed to $88 million over the past week. Seller dominance across derivatives suggested traders remained unconvinced about a sustained recovery. Instead, many appeared to reduce exposure to strength.

Source: Coinalyze

This continued caution posed a risk to the rallys sustainability. If selling pressure persists, Ether.fi could revisit the $0.30 support.

Final Summary

• $ETHFI gained 11% as buyers defended $0.30 and reclaimed key short-term EMAs.
• Negative Spot Netflow signaled sustained buyer demand despite recent market volatility.