Will Ethereum Price Hit $4,000 as Open Interest Reaches $33 Billion?

Ethereum has surged past $2,700 with a 92% rally over the past 35 days. Will the rounding bottom pattern drive ETH to $4,000? Outperforming Bitcoin, Ethereum surpassed the $2,700 mark with a 7% surge on May 13. Currently, it is trading at $2,671, entering a breather phase with an intraday pullback of 0.33%. With the overnight recovery, Ethereum is inching closer to a potential rounding-bottom breakout rally. Could this breakout send the ETH price to the $4,000 mark? Ethereum Price Analysis Bouncing off the $1,383 low formed on April 9, Ethereum has risen by nearly 92% in just 35 days. This bullish recovery has pushed the price above the 200-day EMA at $2,436 and is now challenging the 50% Fibonacci retracement level near the psychological resistance of $2,700. Thanks to this recovery, Ethereum has broken out of a falling channel pattern, effectively ending the bearish trend that began in December 2024. Moreover, with the 50% Fibonacci level acting as the neckline, ETH is forming a rounding bottom pattern. Rising bullish momentum has driven the RSI into the overbought zone, supporting this breakout trend and indicating strong buying pressure. Additionally, the 50—and 100-day EMA lines are on the verge of a bullish crossover. This signals a potential short-term trend reversal and increases the likelihood of a golden crossover. If ETH achieves a decisive close above the 50% Fibonacci level at $2,699, a breakout could occur. The bullish target, based on adding the depth of the pattern to the neckline, points to the 100% Fibonacci level near $4,000. This suggests a potential 50% upside as the bull run continues. On the downside, crucial support for ETH lies at the 200-day EMA at $2,436. Bullish Narrative Grows Stronger in Ethereum Futures Derivative traders are betting big on Ethereum’s continued rally. According to CoinGlass data, Ethereum open interest has surged by nearly 17%, reaching an all-time high of $33.12 billion. Furthermore, the funding rate, now at 0.0088%, signals heightened bullish activity. A sharp increase in short liquidations amounting to $113 million in the past 24 hours reinforces the bullish sentiment. Together, these metrics support the likelihood of a breakout rally in Ethereum futures. Analyst Highlights Key Breakout, Sets Target at $3,033 REKT Capital maintains a bullish outlook on Ethereum. The analyst notes the surge in futures, with ETH surpassing the daily CME gap between $2,530 and $2,630. A daily close above this zone would fully reclaim the CME gap and restore a bullish trend. Ethereum’s next target is the CME gap between $2,892 and $3,033. $ETH Ethereum has completely filled the ~$2530 & ~$2630 Daily CME Gap (green box) Daily Close above green and Ethereum will try to reclaim this CME Gap into a new dynamic support from which #ETH would be able to springboard into additional trend continuation #Crypto #Ethereum https://t.co/es73AH2CA8 pic.twitter.com/nShPsJudX3 — Rekt Capital (@rektcapital) May 13, 2025 DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses. Source: https://thecryptobasic.com/2025/05/14/will-ethereum-price-hit-4000-as-open-interest-reaches-33-billion/?utm_source=rss&utm_medium=rss&utm_campaign=will-ethereum-price-hit-4000-as-open-interest-reaches-33-billion