Ethereum (ETH) is currently trading around $2,470 after surpassing a significant resistance level. This suggests that the price may aim for $3,000 and $4,000.
The strong uptrend began after the Federal Open Market Committee (FOMC) decided to maintain interest rates on May 7. ETH prices have surpassed key levels, and on-chain metrics are signaling bullish trends. Therefore, momentum is primed for a strong bullish move.
Ethereum breaks through the important resistance level of $1,860.
According to Ali Martinez, ETH recently surpassed the resistance level of $1,860. This is an important area where 4.54 million wallets hold 5.58 million ETH.
The leading altcoin has finally broken through a significant supply wall that had restricted its growth for weeks, marking a major shift in market sentiment.
After recovering above this level and currently holding steady, Ethereum (ETH) could see long-term price increases with potential targets of $3,000 and $4,000.
Source: Ali Martinez
Additionally, analyst IncomeSharks emphasizes that the price of ETH has also surpassed the second key resistance level. This has confirmed a strong trend reversal.
The chart shows ETH steadily rising after multiple buy signals along the lower trendline.
With the next major resistance levels at $3,000 and $4,000, traders are keeping an eye on a potential bullish move that could last for months if the current momentum holds.
Source: IncomeSharks
Bullish divergence and on-chain data support ETH's growth.
Javon Marks has noted a significant bullish divergence in Ethereum's price chart. This is a classic reversal pattern signaling a strong recovery ahead.
According to Javon's analysis, ETH has formed a double bottom with momentum indicators, such as the Relative Strength Index (RSI) beginning to rise, indicating bullish divergence.
This technical arrangement is often a sign of a new trend beginning with price targets much higher than the current levels.
Source: Javon Marks
Meanwhile, on-chain data also supports this bullish outlook. Currently, the open interest (OI) of Ethereum has surged by 2.65% to approximately $21.35 billion over the past 24 hours as $400 million in new capital flows into ETH futures.
The rise in open contracts means that traders are positioning themselves for a larger move. Technical analysts point to $3,000 and $4,000 as achievable targets.
The derivatives market signals strong bullish sentiment.
The derivatives market also reflects a strong upward trend for Ethereum. The ETH/USDT long/short ratio on Binance is at 2.1486, while traders on OKX show an even more positive stance with a ratio of 2.26.
These numbers indicate that the number of long traders is double that of shorts, reinforcing strong confidence in the next growth phase.
Source: CoinGlass
For the top traders on Binance, the long/short position ratio has risen to 2.8153, indicating confidence in Ethereum's uptrend. This aligns with market sentiment, as traders prepare for the next price surge.
The increase in long positions and open contracts indicates that the market is anticipating a major move in the coming weeks.
Furthermore, liquidation data also supports this bullish trend, with $14.33 million in ETH long positions and $6.07 million in short positions being liquidated.
ETH aims for $4,000 – Key levels to watch.
Currently, ETH is trading around $2,470 after breaking through the key resistance level of $1,950. The continued bullish action of this leading altcoin could serve as confirmation for the next price surge to $3,000 and even $4,000.
ETH is expected to continue its recent upward momentum to avoid a pullback to the support area of $1,860.
In the short term, with the Fed pausing interest rate hikes as a catalyst, this could just be the beginning of Ethereum's recovery. As technical indicators improve and market sentiment turns optimistic, the outlook for this altcoin will strengthen, indicating a potential breakout in the coming months.
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Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making decisions. We are not responsible for your investment decisions.
