Ethereum has finally made a decisive move after weeks of sideways consolidation, breaking above critical resistance and trading above the psychological $3,000 level. This surge has caught the attention of both spot buyers and derivatives traders, pushing ETH into a key technical and on-chain inflection point.

The breakout coincides with heightened market interest, but the sustainability of this move now depends on how the price reacts to major supply zones in the coming days.

Technical Analysis

By ShayanMarkets

The Daily Chart

On the daily timeframe, ETH convincingly broke above the $2,800 resistance level, sweeping previous highs and reclaiming territory that was last traded back in early 2025. The 100-day and 200-day moving averages are now well below the price, located near the $2,300 and $2,500 marks, respectively.

This offers a strong trend confirmation and dynamic support going forward. The recent breakout also invalidated the prior liquidity hunt near $2,900, suggesting genuine buying pressure rather than just a stop-run. A clean daily close above $3,000 strengthens the bullish case even further.

That said, the price is now pushing toward a broader resistance block at $3,400. If the buyers want to maintain momentum, a retest of the $2,800 zone needs to hold as new support. Failure to hold this level could lead to a correction toward the 200-day moving average. Until then, momentum favors the upside.

The 4-Hour Chart

Zooming into the 4H chart, ETH has shown strong impulsive structure, leaving behind multiple imbalances and fair value gaps as it pushed through the $2,800 resistance zone. This move also cleared the prior buy-side liquidity zone, validating a bullish market structure shift. The current leg up has created a rising imbalance, which could act as a magnet for a short-term pullback if buyers start taking profits.

The ideal scenario for continuation would be a controlled retracement into the $2,850–$2,900 range, forming a higher low and confirming that demand is still in control. If the pullback gets deeper, the fair value gap located at the $2,700 zone offers another layer of support. As long as the price stays above this zone and maintains higher lows, the bullish market structure remains intact.

Sentiment Analysis

Ethereum Open Interest

Ethereum’s open interest across all exchanges has reached a new high of $22.6B, while price pushes just above the $3K mark. This sharp rise in open interest, without an equally aggressive move in price, signals a surge in leveraged positioning. Such behavior often precedes volatility, as crowded trades may trigger liquidations on either side if тхе price swings sharply.

While the increase in open interest may support continuation if fueled by genuine spot demand, it also raises the risk of short-term corrections. If this open interest is overly long-heavy, a pullback could force a wave of liquidations and quickly drive the price back toward key support levels.

Overall, the open interest surge reflects growing market participation, but it also suggests that ETH may be approaching a point where leverage becomes a double-edged sword.

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