Ethereum Eyes $3,200 as CME Futures Gaps Persist Unfilled

Ethereum (ETH) prices are on an upward trajectory, with a recent surge to $2,666, up 5.6% in 24 hours and 64% over the month. Analysts suggest a potential rise to $3,200 as CME futures gaps remain unfilled. Caution is advised due to signs of an overheating market, although long-term outlooks remain positive due to low holdings on exchanges and renewed institutional interest.

Ethereum, commonly abbreviated as ETH, is currently riding a wave of momentum, showing promising signs that it could potentially surge to $3,200. The cryptocurrency’s price has jumped about 5.6% over the last 24 hours, landing at $2,666, which reflects an impressive increase of more than 64% in just the past month. This escalation has rekindled discussions about reaching two unfilled CME futures gaps around the $3,200 mark.

The concept of CME gaps isn’t new in trading circles. Titan of Crypto, a pseudonymous trader, suggested that these gaps typically get filled. This suggests that Ethereum’s upswing may indeed have further to run. Historically, price behavior shows that these gaps often act like magnets, drawing the price back to them in future trading.

Gaps in trading usually occur when a market opens significantly higher than where it closed the previous week. Right now, Ethereum’s bullish momentum places it in position to challenge these levels, especially if it can clear important resistance points along the way. In recent commentary, market analyst Michaël van de Poppe noted that Ethereum has recently breached the $2,400 resistance level, which he believes positions it well for an ascent similar to Bitcoin’s, potentially exceeding $3,000 soon.

However, with soaring prices, some market observers urge caution. A report from CryptoPotato discussed how ETH may be in an “overheated state” due to heavy trading activity and resulting profit-taking just below the $2,600 price point. Data from CryptoQuant indicates a potential short-term cooling period before Ethereum can resume its upward path.

Even with possible short-term setbacks, long-term trends remain promising. Santiment, an analytics firm, revealed that less than 5% of all Ethereum supply is currently held on centralized exchanges—the lowest amount seen in over ten years. Moreover, investment products linked to Ethereum generated inflows of $205 million last week, suggesting a resurgence in institutional confidence following Ethereum’s Pectra upgrade.

In broader market conversations, there’s rising excitement about an upcoming altcoin season. YouTuber Crypto Rover pointed to Ethereum’s recent gains as indicative of this potential. Chris Burniske, a former head of ARK Invest’s crypto division, echoed this sentiment by pointing out ETH’s relative strength against Bitcoin as a signal for altcoin rallies.

Despite its recent successes, Ethereum is still trading over 29% below its all-time high. Daan Crypto Trades, another digital asset investor, identified the next critical resistance level for ETH at $2,850. If Ethereum can manage to break this resistance, it could set the stage for filling that CME gap at $3,200, as suggested by Titan of Crypto.