Ethereum has been steadily climbing in recent weeks, with technical indicators suggesting a potential major bull run. The cryptocurrency is nearing the upper edge of a multi-year symmetrical triangle, with $3,500 being a crucial resistance level. A monthly close above this level would confirm a breakout from this pattern, which has been developing since early 2021. This breakout could put Ethereum on a trajectory towards an estimated long-term target of $12,000, based on historical trends exhibited in similar formations.
Market metrics also signal a potential shift in momentum. Open interest is rising, indicating increased trader participation and positioning. The Coin Volume Delta (CVD) is stabilizing, and the Adaptive Strength Index (ASI) is climbing, both of which are signs of stronger trader engagement and a possible move towards bullish momentum. These technical signals suggest changing dynamics in the short term and reflect conditions often seen before a significant market movement.
Recent intraday data shows Ethereum recovering steadily to $2,956 following a price dip. During this time, open interest (OI) rose sharply, indicating fresh participation and increased positioning. Rising OI generally suggests higher engagement and preparation for price direction. The aggregated CVD for coin-margined futures, which tracks buying and selling pressure, showed early selling but started turning upward. Meanwhile, the Adaptive Strength Index (ASI) increased to 39.11, hinting at growing momentum. These technical signals suggest changing dynamics in the short term.
Overall, Ethereum’s price, volume, and participation metrics now reflect conditions often seen before a significant market movement. The coming sessions will be critical for confirming whether the multi-year pattern resolves in favor of a bullish trend. The recent breakout above $3,000 has further bolstered the bullish sentiment, as it signals a new phase in the bull market. Analysts have noted that the higher low formation is a positive sign, as it shows that the cryptocurrency is not only recovering from previous lows but also setting new highs. This pattern is often seen as a precursor to a significant price increase, as it indicates that the market is gaining momentum and confidence.
The technical indicators also suggest that Ethereum is poised for a major bull run. The relative strength index (RSI) is currently above 50, which indicates that the cryptocurrency is in a bullish trend. The moving average convergence divergence (MACD) is also showing a bullish crossover, which is a strong signal that the price is likely to continue rising. The recent price action has also been supported by positive news and developments in the Ethereum ecosystem. The successful launch of Ethereum 2.0, which aims to improve the scalability and security of the network, has been a major catalyst for the price increase. The upgrade has been widely praised by the community, as it addresses some of the key challenges facing the cryptocurrency.
In addition, the growing adoption of decentralized finance (DeFi) applications on the Ethereum network has also been a driving force behind the price increase. DeFi applications allow users to access financial services without the need for intermediaries, and they have gained significant traction in recent months. The total value locked in DeFi protocols has surged to new all-time highs, indicating that there is strong demand for these services. The recent price action has also been supported by institutional investment. Major financial institutions have been increasingly investing in Ethereum, as they recognize its potential as a store of value and a medium of exchange. This institutional interest has helped to drive the price higher, as it provides a steady source of demand.
