PelinayPA
Ethereum Is Preparing for an Upward Breakout
On the chart, Open Interest is around $7.8B, while the price is hovering near $3,100. This level is neither extremely low nor extremely high, which suggests that the market is maintaining its positions rather than exiting them. Recently, the price has been trending slightly upward, and Open Interest has been increasing as well. This indicates that while new positions are being opened, existing positions are also being maintained. In other words, market participants are not staying on the sidelines. Volatility is increasing, and a compression environment is forming. Open Interest is recovering above its SMA(30), SMA(50), and SMA(100) moving averages. This signals a renewed willingness to take risk in the leveraged market. If the price holds above $3,000 and the increase in Open Interest continues gradually rather than through sudden spikes, it would support a controlled, spot-driven upward move. In this scenario, the price could extend its advance toward the $3,700 level. This is also where my bias lies. Ethereum appears to be preparing for an imminent breakout. As Open Interest rises, investor demand is increasing. In the short term, a sharp move is possible. The market will either ease through a positive breakout or be cleansed via liquidations. My expectation is a positive break above the $3,324 resistance, continuation toward $3,700, and then a return to the primary downtrend.