Ethereum, for one, had a spectacular comeback. Specifically, it has increased by 5.2% in price and daily trading volumes have exploded by 88%, now reaching $22.5 billion. Open interest in Ethereum is approaching $40 billion, a mark not seen since mid-October. This unique mix of fundamentals has led many to question whether Ethereum’s price can maintain its bullish trajectory.
The recent price run-up has put Ethereum at a real tipping point. If it’s able to keep its footing above the $2,600 support, a retest of the $2,800 resistance turns likely. Continuing bullish momentum might then see Ethereum pushing up towards its price ceilings with $3,000 and likely $3,200 in play.
Increased liquidation poses a threat. If realized, this might drag ETH back down to its short-term support at $2,600. Any additional bearish sentiment might push the price to the next support level of $2,400.
Open interest and trading volumes have more than doubled since the beginning of October. Further, this can be interpreted as increasing levels of investor interest and actual participation in the Ethereum market. The potential near $40 billion open interest figure is a testament to the size of the leveraged positions at play today.
The immediate support level is $2,600. A definitive break under this would likely see price test the lower support zone at $2,400. To the positive, first resistance is at $2,800, then a potential breakout targets of $3,000 and $3,200 become possible if the bulls take control long-term.
Long-term forecasts remain optimistic. According to one set of projections, Ethereum will hit more than $3,500 by June 2025. These are all subject to a lot of assumptions and fluid market conditions that could prove volatile.
