Despite the bearish outlook in the cryptocurrency landscape, Ethereum (ETH), the world’s second largest cryptocurrency, is poised for a remarkable upward rally. A bullish price action pattern and record trader interest support this positive outlook.
Ethereum Open Interest Reaches All-Time High
On November 26, 2024, on-chain analytics company Mint glass revealed that Ethereum (ETH) Open Interest (OI) rose 8.9% in the past 24 hours to reach an all-time high of $22 billion. The current OI is more than double the level seen during Ethereum’s all-time high in November 2021.
This underlines the growing interest among traders in this asset and has the potential to propel the altcoin to new highs in the coming days.
Bullish catalysts support ETH price rise
Aside from the spike in open interest, Ether has consistently received support from recent developments such as bullish price action, the impending resignation of Gary Gensler (SEC), political support from pro-crypto advocate Donald Trump, and other factors.
Ethereum (ETH) Technical Analysis and Upcoming Level
According to CoinPedia’s technical analysis, Ethereum is on the verge of breaking out from a strong resistance level at $3,500 for the first time since July 2024. However, currently it is consolidating within a tight range between USD 3,290 and USD 3,480.
Based on the recent price action, a breakout of the consolidation along with the resistance level could boost ETH significantly.
Based on the historical price momentum, if ETH breaks the resistance level and closes a daily candle above the $3,550 level, there is a high possibility that ETH could rise by 15% to reach the $4,100 level in the coming days.
Currently, the asset is trading above the 200 Exponential Moving Average (EMA) on the daily time frame, indicating an uptrend. Traders and investors often use this indicator to determine whether an asset is in an up or down trend.
Meanwhile, ETH’s Relative Strength Index (RSI) remains below 70, indicating that the asset is not yet in the overbought zone and still has room to rise in the coming days.
Current price momentum
At the time of writing, Ether is trading around the $3,475 level and has posted a gain of 4.10% over the past 24 hours. During the same period, trading volume increased by 72%, indicating greater participation from traders and investors due to the asset’s bullish outlook.
