Ethereum continues to show strong results as it nears an important price level. Technical analysis reveals that the asset maintains a bullish structure with growing interest.
Technical Analysis
On the daily chart, Ethereum respects its bullish structure, flipping the $3,300 zone from resistance to support. The 100-day and 200-day moving averages have formed a bullish crossover, confirming the trend. The RSI, which recently entered overbought territory, has cooled down slightly but remains high, suggesting potential overheating of momentum. However, the clean sweep and reclaim of previous highs around $3,300 shows strength and commitment from buyers. If the price begins to expand from this consolidation range, the next upward target would likely be the $4,400 region.
Open Interest Analysis
On the sentiment side, Ethereum’s open interest across all exchanges has surged to over $27 billion, marking its highest point in years. This indicates a massive influx of leveraged positions and reflects growing speculative appetite in the market. However, despite elevated open interest, funding rates remain at relatively moderate levels, suggesting that the majority of traders are not excessively over-leveraged. This gives Ethereum more room to push higher without the immediate threat of a sharp deleveraging event.
Support and Resistance
The 4-hour chart supports the bullish case with a clearly defined ascending trendline holding the price. The asset continues to respect the trendline, with each dip met by strong buying interest. However, caution is advised in the short term, mainly due to overbought conditions on the daily chart. If ETH fails to hold above the $3,700 zone, a short-term correction towards $3,500 would be a healthy reset.
Ethereum showcases signs of further growth, yet it's important to monitor key support and resistance levels to assess possible scenarios for future price movements.
