Despite a bearish outlook across the cryptocurrency landscape, Ethereum (ETH), the world’s second-largest cryptocurrency, is poised for a notable upside rally.
A bullish price action pattern and record interest from traders support this positive outlook.
On November 26, 2024, on-chain analytics firm Coinglass revealed that Ethereum’s (ETH) Open Interest (OI) surged by 8.9% in the past 24 hours, reaching a record high of $22 billion.
The current OI is more than double the level seen during Ethereum’s all-time high in November 2021.
This highlights the growing interest from traders in the asset and it has the potential to propel the altcoin to a new high in the coming days.
Apart from the spike in open interest, Ether has been consistently gaining support from recent developments such as bullish price action, the upcoming resignation of Gary Gensler (SEC), political backing from pro-crypto advocate Donald Trump and other factors.
According to CoinPedia’s technical analysis, Ethereum is on the verge of a breakout of a strong resistance level of $3,500 level for the first time since July 2024.
However, it is currently consolidating within a tight range between $3,290 and $3,480 level.
Based on the recent price action, a breakout of the consolidation along with the resistance level could propel ETH significantly.
Based on historical price momentum, if ETH breaches the resistance level and closes a daily candle above the $3,550 level, there is a strong possibility it could soar by 15% to reach the $4,100 level in the coming days.
Currently, the asset is trading above the 200 Exponential Moving Average (EMA) on the daily timeframe, signaling an uptrend.
Traders and investors often use this indicator to determine whether an asset is in an uptrend or a downtrend.
Meanwhile, ETH’s Relative Strength Index (RSI) remains below 70, indicating that the asset is not yet in the overbought zone and still has room to soar in the coming days.
At press time, Ether is trading near the $3,475 level and has recorded a gain of 4.10% over the past 24 hours. During the same period, its trading volume jumped 72% indicating higher participation from traders and investors following the asset’s bullish outlook.
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