Ethereum Price Reclaims $2,500 With 40% Weekly Rally. As 67M ETH approaches profit, a breakout could lead to a rally towards $4,570.
Ethereum (ETH) price gained momentum with market-wide gains, recording a nearly 40% rally last week.
As the price of ETH crosses $2,500, 6.61 million investors are about to witness their Ethereum portfolio turn green.
Amid the short liquidations that ended the ETH bears, an additional 3% jump could shake off about $800 million in bearish positions.
Could Ethereum bounce back to $3,000 on the back of nearly 67 million ETH being profited and sellers forced out?
Ethereum Price Rise Reclaims $2,500, Marks Key Pattern Breakout
The sharp rise in Ethereum price from $1,812 to $2,584 between May 8 and May 10 produced three consecutive bullish candlesticks, representing a 42% increase.
This pattern is known as the Triple White Soldier, a strong bullish signal indicating increasing buying pressure.
The change in price trend meets the growing expectation of a strong rebound and continued Ethereum bull run.
Starting at a two-year low of $1,386 during the tariff wars, the reversal run exceeded a peak of $2,517 on March 2, completing a "U" shape on the chart. This is known as a rounding bottom pattern, which signals a trend reversal.
As Ethereum holds above $2,500, the bulls expect a breakout from this pattern followed by a rally. The price target is estimated by adding the depth of the "U" shape to the breakout point, which indicates an 81% jump to $4,570.
This is consistent with the Ethereum price prediction, which predicts a major increase in 2025.
Furthermore, ETH price is trading above the 200-day exponential moving average (EMA), which marks a key pivot in the bullish trend, indicating an extension.
An increase in trend momentum supporting Ethereum's rally pushes the Relative Strength Index (RSI) into an overbought zone, indicating a strong dominance of buyers. However, it also warns of short-term corrections.
On the other hand, if Ethereum breaks below the key support confluence of the 200-day EMA and the 50% Fibonacci level near $2,430, the uptrend will be nullified. A potential downside could retest the 100-day EMA at $2,144.
A 3% move risks huge liquidation risks for Ethereum
With the Spectra upgrade and broader market rally fueling Ethereum’s turnaround, ETH short positions are at high risk.
ETH exchange liquidation map by Coinglass shows cumulative short liquidation leverage of $786M at $2,586.
Therefore, if the bull run continues for another 3%, a forced exit from large bearish positions could trigger a short squeeze.
In contrast, a $715 million long liquidation risk is $2,438, a roughly 3% drop from the current ETH price. Therefore, a 3% move in either direction can result in a sharp directional move in Ethereum.
Will 6.61 million investors be profitable today?
Amid Ethereum's rising price, IntoTheBlock's Global In/Out of the Money (GIOM) data shows that 6.61 million investors are close to turning their 66.96 million ETH supply into profit.
Investors' purchase prices ranged between $2,360 and $2,557 with an average price of $2,462.
As the uptrend moves above the break-even point, a cross above $2,557 will officially mark the nearly 67 million supply as profitable. This could reinforce the ongoing bullish trend, forming a strong support zone.
Finally, a potential leveraged rally overlapping with the 67 million supply turning profitable could skyrocket ETH prices.
Based on the technical chart, the target for the breakout rally is $4,570. The psychological mark of $3,000 can be an important pit stop.