Key Insights
- Ethereum 24-hour trading volume has surged by 100% to $26 Billion.
- ETH price is in a major support zone and gearing up.
On the wider time frame, Ethereum (ETH) price has been rising by taking support on an ascending trendline. However, Ethereum price has been consolidating on the trendline after a decent fall.
ETH price is getting squeezed into a narrow range as it approaches the 20-day EMA.
ETH Price Shaped Symmetrical Triangle
When writing, Ethereum crypto was trading at $2,690.00, which has declined by 2.03% over the past 24 hours. The market capitalization was $325.42 Billion and ranks 2nd in the crypto market.
ETH price is on the verge of a breakout and is hovering near the 20-day EMA. Suppose the price triggers a breakout from the triangle, it could be a bullish signal. If the price surpasses the immediate resistance zone of $2,750.00, buyers might join the bullish move.
Amid this bullish move, the price is expected to reach a descending trendline. Alternatively, if the price breams down from the triangle, It might experience selling pressure.
Ethereum Price Analysis Over Daily Time Frame
ETH price is about to take off with bullish momentum on a daily time frame. Just a single bout of bullish momentum could lift the price to the $3K territory.
Once the price breaks out from the descending trendline, it could generate a bullish move. If the price sustains over the trendline, bulls might show interest which may lead to a strong bullish rally. Amid this bull run, buyers might eye a new all-time high.
On the other hand, if the digital asset price dives below the major trendline, it would be followed by selling pressure. Losing this trendline could trigger a bearish rally for the next few weeks.
Growing Open Interest Pushing Market Activity
Additionally active is the Ethereum derivatives market, which is aiming for a high open interest of $13.0 Billion.
Open interest has increased by 7.04% since yesterday, indicating that more market participants are engaging with Ethereum options.
Perpetual contracts were the only source of open interest, accounting for $12.4 Billion of the total value.
These are cross-border contracts that have no expiration date, regardless of Ethereum’s price. They continue to be the most widely used contracts on the Ethereum market.
The growing open interest in perpetual contracts is indicative of Ethereum’s high level of popularity. For the short to medium term in particular.
Therefore, the upside outlook becomes more likely when the price increases and breaks through high values like $2,800.
Currently, some important technical levels are being watched. If Ethereum breaks above $2,800, it will stimulate further accumulation.
ETH Price Analysis Amid Increasing Open Interest
Ethereum is currently positioned for a potential bullish breakout as it trades within a key support zone of around $2,690. With trading volume surging and a significant rise in open interest in the derivatives market, market sentiment is leaning toward bullish momentum.
A breakout above the immediate resistance level of $2,750 could signal an increase in buyer interest, potentially pushing ETH towards the $3,000 mark and beyond.
However, the market remains cautious, as a breakdown below the major trendline could trigger selling pressure and lead to a bearish outlook.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
