Ethereum (ETH) is showing bullish strength as it tests the $2,850 resistance level, fueled by a jump in futures open interest, which recorded a historical high of 15.21 million ETH. Institutional activity, led by the Volatility Shares 2x leveraged ETH ETF, and regular flows into US spot Ethereum ETFs are driving the increase. Accumulation addresses have also experienced high activity, with over 400K ETH inflows on several days. Technical indicators indicate Ethereum trading above its 200-day SMA, with potential for moving up towards $3,400 if present support holds good, although short-term volatility is likely.
KEY LOOKOUTS
• A key resistance for Ethereum is at $2,850; a break and close above it could open the way to $3,400.
• ETH futures open interest has reached an all-time high of 15.21 million ETH, reflecting intense institutional demand and increasing leveraged positions.
• Accumulation addresses continue to witness massive inflows, with more than 400K ETH added in five out of the last seven days, reflecting strong long-term holding sentiment.
• ETH continues to trade above its 200-day SMA with MACD closing in on a bullish crossover and RSI well on its way to overbought levels, indicating increasing upward momentum but potential short-term corrections.
Ethereum is registering renewed strength as it fights off the $2,850 resistance level, fueled by a jump in futures open interest and consistent institutional inflows. The record high futures OI of 15.21 million ETH, dominated by leveraged products such as the Volatility Shares 2x ETH ETF, is a testament to growing investor confidence and risk appetite. While this is happening, high inflows into accumulation addresses and sustained buying pressure in US spot ETFs indicate a healthy demand base. Since ETH is trading above its 200-day SMA and technical indicators are indicating bullish momentum, the cryptocurrency is set to go higher if it sustains current support levels and breaks through short-term resistance levels.
Ethereum is probing the $2,850 level of resistance, supported by all-time-high futures open interest and heavy accumulation. Institutional buying, especially via leveraged ETFs, is behind the direction of the market. Support persists, and ETH could aim for the $3,400 level in the days ahead.
• Ethereum’s record-high futures open interest amounted to 15.21 million ETH, which was dominated by the Volatility Shares 2x leveraged ETH ETF.
• CME has observed substantial expansion in ETH futures positions, which reflects increasing institutional demand.
• Accumulation addresses posted recorded inflows in excess of 400K ETH in five of the previous seven days.
• US spot Ethereum ETFs registered net inflows for 17 consecutive days, amounting to $124.93 million on Tuesday alone.
• ETH temporarily broke above the $2,850 resistance level for the first time since February 4.
• Technical markers such as the RSI and MACD indicate firm bullish momentum but suggest potential near-term volatility.
• Should bullish momentum persist, ETH may go for $3,078 and $3,400; inability to maintain support could witness decreases towards $2,500.
Ethereum has seen considerable investor demand, especially from institutional investors. Futures open interest in ETH has set an all-time high of 15.21 million ETH, and most of this rise is due to the Volatility Shares 2x leveraged ETH ETF. It has attracted a significant amount of leveraged exposure, which means that high-net-worth and professional traders are long on Ethereum’s long-term future. Also, the Chicago Mercantile Exchange (CME) experienced a significant increase in ETH futures positions, which further highlights the increasing demand from major market players.
ETHEREUM DAILY PRICE CHART
CHART SOURCE: TradingView
Meanwhile, US spot Ethereum ETFs are still seeing steady inflows, which have now had 17 consecutive days of being in the green. Accumulation addresses — accounts that have never offloaded any ETH — are also witnessing significant inflows, which indicates that long-term holders are optimistic about Ethereum’s long-term potential. All these indicate an increasing sentiment of optimism in the market, with both retail and institutional investors reflecting steady demand for the asset.
TECHNICAL ANALYSIS
Ethereum’s current price action demonstrates robust bullish momentum as it remains above the crucial 200-day Simple Moving Average (SMA), typically a good gauge of long-term trend strength. Relative Strength Index (RSI) is reaching overbought levels, indicating robust buying pressure but also the potential for near-term consolidation or small pullbacks. In the meantime, the Moving Average Convergence Divergence (MACD) is trying to execute a bullish crossover, as its histogram is becoming positive, reflecting a building upside bias. As long as ETH holds its support above the $2,700–$2,760 zone, it is very well-placed to test higher levels of resistance in the coming days.
FORECAST
If Ethereum is able to breach and hold above the $2,850 resistance mark, it may pave the way to the next significant resistance around $3,078, which also coincides with the 61.8% Fibonacci retracement level. The successful breakout may then take ETH all the way up to the $3,400 area, which is fueled by robust institutional buying interest, accumulation patterns, and optimistic market sentiment. The consistent flows into both spot and futures ETFs also contribute to the positive outlook, indicating that investors continue to have faith in Ethereum’s long-term potential.
On the negative side, if Ethereum cannot stay above the $2,850 resistance, it is possible that it will find instant support at its 200-day SMA. Breaking below this level can set off a further drop to the $2,500 level. Also, with RSI nearing overbought territory, the risk of short-term profit-taking and higher volatility is always there, particularly if leveraged positions start to deplete. Investors must be careful against surprise corrections amidst the general market gyrations.
