- Ethereum is testing a key $2,400–$2,700 demand zone, with a breakout above $2,927 potentially fueling further gains.
- Rising open interest above $20 billion suggests increased speculation, aligning with Ethereum’s recent price swings.
- ETH must hold $3,500 for a move toward $4,500+, while failure below $3,000 could trigger a drop to $2,500–$2,700.
Currently trading around $2,689.04 with a market capitalization of $324 billion, ETH has gained roughly 2% in the past 24 hours. While price struggles have persisted recently, this shift in market sentiment is seen as a potential turning point.
According to analyst Bullishbanteras ,the ETH/USDT daily chart suggests a potential bullish reversal as price hovers around a key demand zone. Also, the Change of Character (CHoCH) observed in November marked a structural shift to bullish momentum, leading to a rally.
However, after reaching a local high, ETH retraced, now testing the $2,400–$2,700 support area. This zone previously acted as a base for the last significant breakout, making it a critical level for bullish continuation.
Moreover, several Equal Highs (EQH) are visible particularly near $2,927, suggesting a liquidity pool above this level. The presence of these liquidity zones implies that market makers may drive price action toward higher levels, provided that bullish momentum sustains.
Ethereum’s Futures Market Signals Potential Volatility Ahead
According to data from Coinglass, open interest fluctuated between $5 billion and $10 billion, reflecting moderate market activity. Rates of speculative interest increased dramatically in late December and early January because open interest rose above $20 billion. The price increase of Ethereum also coincided with its previous surge beyond $4,000 followed by subsequent declines.
ETH market price demonstrates close correlation with open interest metrics because leveraged trader positions heavily impact market volatility. Open interest staying high during market price declines signals increased numbers of short positions which enhances volatility risk.
Ethereum Key Levels To Monitor
Ethereum’s price direction depends on key levels. If ETH holds above $3,500 and breaks resistance at $4,000, a surge toward $4,500+ could unfold. However, if ETH falls below $3,000, it could drop to $2,500 – $2,700, especially if open interest declines, signaling reduced trader confidence. The market situation currently requires attention because macroeconomic factors together with liquidity trends act as key determinants of ETH’s value development.
