Ethereum's recent performance and market dynamics are quite noteworthy. Currently, ETH has firmly established itself above $3500, a key support level regained last Friday, showing signs of market strengthening.
Since late June, ETH has risen over 70%, and driven by increasing demand and institutional interest, it seems to have entered a new bullish phase, with bulls holding a clear advantage, supported by the technical structure and price trend for further upside.
What is more noteworthy is that CryptoQuant data shows that Ethereum's open interest has reached a historical high of $50 billion, indicating a surge in trading activity and capital inflow in the ETH derivatives market.
Historical experience shows that a significant increase in open interest often accompanies dramatic price fluctuations. The volatility of Ethereum is likely to rise in the coming days, and large price swings cannot be ruled out. However, considering the current on-chain and macro fundamentals, the market is more inclined to be bullish.
From the price trend, ETH has confirmed a breakthrough above the psychological level of $3500, closing at $3588.26 on the 3-day chart, with significantly increased trading volume during the breakout, reinforcing the strength of the trend. The next key resistance level is at $3742.95; if it can successfully hold above this position, it is expected to launch an attack towards the $4000-$4200 range.
The key support level below is $2852.16, which aligns with the previous consolidation breakout point and the 200-day moving average. Holding this area is crucial to maintaining the current bullish structure.
Moreover, the growth of the Ethereum network is steady, with active addresses, validator participation, and Layer 2 activity all increasing. The recent passage of the GENIUS Act in the US provides legal clarity for stablecoins and lays the groundwork for cryptocurrency regulation, which is undoubtedly a direct benefit for Ethereum, as it serves as the foundation for DeFi and real-world asset tokenization.
The performance in the coming week may have a significant impact on Ethereum's mid-term trend.
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