Despite a bearish sentiment prevailing in the cryptocurrency market, Ethereum (ETH), the second-largest digital asset globally, appears to be gearing up for a significant upward rally. A combination of a bullish price pattern and increased interest from traders is reinforcing this optimistic outlook.
Ethereum Open Interest Reaches All-Time High
Recent data from on-chain analytics firm Coinglass has revealed that Ethereum’s Open Interest (OI) has surged by 8.9% within the last 24 hours, hitting a historic high of $22 billion on November 26, 2024. This current level of OI is more than double the amount observed during Ethereum’s previous all-time high back in November 2021. The substantial increase in open interest underscores a growing interest from traders in Ethereum, potentially setting the stage for a new price peak in the near future.
Bullish Catalysts Driving ETH’s Price Surge
In addition to the spike in open interest, Ethereum has been receiving support from various bullish catalysts, including positive price action, the impending departure of Gary Gensler from the SEC, endorsement from prominent pro-crypto figure Donald Trump, and other favorable developments.
Ethereum (ETH) Technical Analysis and Key Levels
Technical analysis conducted by CoinPedia indicates that Ethereum is on the cusp of breaking through a significant resistance level at $3,500 for the first time since July 2024. Presently, the asset is consolidating within a narrow range between $3,290 and $3,480. A successful breakout above this consolidation range and resistance level could propel ETH to higher levels.
If Ethereum manages to breach the resistance level and close a daily candle above $3,550, there is a strong likelihood that it could surge by 15% to reach $4,100 in the upcoming days. Notably, the asset is currently trading above the 200 Exponential Moving Average (EMA) on the daily chart, indicating an upward trend. The Relative Strength Index (RSI) for ETH remains below 70, signaling that the asset is not yet overbought and still has room for further gains.
Current Price Momentum and Trading Volume
As of the latest update, Ethereum is trading near $3,475, registering a 4.10% increase over the past 24 hours. Moreover, trading volume has surged by 72% during the same period, suggesting heightened interest from market participants in response to Ethereum’s bullish prospects.