Ethereum is showing strong signs of a price breakout, with analysts eyeing a target near $3,600. The cryptocurrency surged 3.8%, supported by rising open interest in its derivatives market and growing bullish momentum.
After Bitcoin neared $110,000, Ethereum outperformed with a 3% gain, moving closer to breaking out of a bullish flag pattern. This technical setup suggests a potential rally in the coming weeks.
On Ethereum’s daily chart, the price has been moving sideways between two key Fibonacci levels. Support sits near $2,400, while resistance holds around $2,700. Ethereum recently pushed close to the upper resistance with a strong bullish candle, boosting hopes for a breakout.
Currently, Ethereum trades near $2,638, showing slight pullbacks but keeping a positive trend. The 50-day and 100-day moving averages are about to cross upward, which often signals more gains ahead. Although the Relative Strength Index (RSI) shows Ethereum is near overbought levels, it still supports further upside.
The flag pattern breakout could drive Ethereum’s price up by about 33%, pushing it toward $3,577. This would surpass another resistance level near $3,436 and open the way to a psychological target around $4,000.
On the downside, support remains strong at $2,400 and near the 100-day moving average around $2,259.
Ethereum’s derivatives market also reflects this bullish outlook. Open interest recently hit a record $35.48 billion, with trading volume jumping nearly 40% to $79.51 billion. The options market grew significantly, with volume rising 64% and open interest increasing nearly 4%.
Funding rates and the long-to-short ratio show more traders are betting on Ethereum’s price rising. Liquidations of short (bearish) positions outpaced those of long (bullish) positions, indicating growing confidence among buyers.
Disclaimer: This article is for informational purposes only and is not financial advice. Always conduct your own research before making investment decisions.
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