Key Insights:
- Ethereum forms a hidden bullish divergence, repeating a pattern that led to past price rallies.
- Resistance between $3,178–$3,250 remains critical for bulls as price tests rejection levels again.
- Open interest hits $39.32B, signaling heavy positioning ahead of a possible major price breakout.
Ethereum (ETH) was showing a hidden bullish divergence on the daily chart. This setup appears when the price makes higher lows while the Relative Strength Index (RSI) forms lower lows. Traders often watch for this pattern as it can suggest strength behind the current trend, even when momentum appears weak.
A similar setup formed in late 2022 and was followed by a strong rally. ETH is now showing the same structure again. Analyst Javon Marks noted that a similar response could lead to a gain of over 54%, possibly pushing Ethereum to its all-time high above $4,900. He also added that such a move could bring $8,500 into view if momentum holds.
Price Facing Resistance Around $3,250
Ethereum was testing a key resistance area between $3,178 and $3,250. This zone had acted as support earlier but flipped to resistance after a breakdown.
According to analyst Lennaert Snyder,
“shorts after the failure within this box are legit.”
The market is now watching to see whether ETH can break through this level.
If Ethereum pushes above $3,250 and holds, price could rise toward the next level at $3,308. If it fails to break out, a move back down is likely. A support area sits between $3,070 and $3,120. This zone may offer a base for buyers, but only if the price shows signs of holding and reversing.
Futures Data Shows High Market Interest
Open interest in Ethereum futures has reached $39.32 billion, based on data from Coinglass. This level is close to what was seen during past major price runs. A rise in open interest can reflect more trading activity and positions building up in the market.
If open interest keeps rising while price remains stable or moves higher, it often supports the trend. But if price starts falling while interest stays high, traders could be overexposed. That scenario may lead to forced liquidations and sharp moves.
Market Conditions and Outlook
Ethereum was trading around $2,931.36, showing a 24-hour drop of 5.2% and a 7-day decline of 5.6%. The price is now sitting below the $3,000 level after failing to hold above support earlier in the week.
Traders are watching the $3,178–$3,250 range closely. A clear break above could shift momentum. Until then, ETH remains in a range, with short-term moves likely influenced by resistance and support levels. Open interest and divergence patterns are key signals being tracked.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.