Ethereum Price Forecast: ETH Tackles $2,850 Resistance Amid Record Futures Open Interest

Ethereum is currently priced around $2,770 and recently surpassed the $2,850 resistance level. The futures open interest for ETH has surged to an all-time high of 15.21 million ETH, largely propelled by institutional participation and significant inflows into US spot ETFs. While bullish momentum is building, Ethereum could see volatility if certain key price levels are breached, making this a critical time for investors to stay informed.

Ethereum (ETH) is currently priced at around $2,770. Recently, it’s been making headlines as it approaches a significant resistance level of $2,850. This surge comes alongside a remarkable increase in open interest for ETH futures, reaching an all-time high of 15.21 million ETH, largely driven by the Volatility Shares 2x leveraged ETH ETF. In fact, Ethereum’s accumulation addresses have recorded notable inflows of over 400,000 ETH on five of the past seven days, hinting at strong bullish sentiment among investors.

The rise in ETH’s price can be largely attributed to its futures open interest skyrocketing by about 1.57 million ETH just these past few days. This growth in open interest has coincided with an increase in funding rates, signalling that investors are becoming more willing to take on risk. The Chicago Mercantile Exchange (CME) has played a substantial role in this surge, with the Volatility Shares ETF being a major contributor, indicating that institutional investors seem to drive this demand for leveraged trading.

Between mid-April and early June, the exposure from the Volatility Shares ETF increased by 305,100 ETH, while CME’s ETH open interest also jumped significantly. A recent report highlighted potential concerns over the influence of one single entity dominating the CME, suggesting that such concentrated leverage could pose risks in the future amidst the demand for long positions in ETH.

Moreover, inflows into US spot Ethereum ETFs have exhibited consistency, logging net inflows of $124.93 million on Tuesday. This marks 17 consecutive days of positive activity in the market for Ethereum. That’s quite impressive, really. Accumulation addresses continue to attract attention as they’ve also shown signs of health, accumulating large amounts of ETH recently, with new addresses making up a significant share of this growth.

As we advance, Ethereum may encounter heightened volatility if it manages to breach the $2,800 mark. Laevitas.ch data indicates this level has substantial volume and a third-largest open interest in the options market which could see profit-taking if the price escalates further. However, just to illustrate, Ethereum recorded futures liquidations amounting to $111.56 million over the last 24 hours, with long positions taking a lion’s share of this.

After exceeding the crucial resistance level, ETH briefly touched above $2,850, a level not seen since early February this year. Adding to this bullish narrative, it has climbed above the cost basis for nearly 2.1 million ETH which was acquired around $2,700 to $2,760. Looking ahead, there doesn’t appear to be any major resistance until it nears $3,400, aligning with a broader support base.

Nevertheless, if the trading range from $2,700 to $2,760 holds, Ethereum might have a clear shot at $3,420. Conversely, if ETH retraces back below the $2,850 mark, it could dip towards the 200-day SMA, potentially leading down to $2,500. Technical indicators are mixed, with the Relative Strength Index (RSI) nearing overbought territory while the Moving Average Convergence Divergence (MACD) flirts with a bullish crossover, hinting at promising potential for the months ahead.

In conclusion, the overall market behaviour, particularly towards Ethereum, suggests a bullish trend with significant technical indicators pointing in a positive direction. Market participants should closely monitor the ongoing developments, as the current landscape hints at potential challenges and opportunities in the coming days. But, as always, potential investors should do their homework before jumping in, as the crypto market continues to remain volatile and unpredictable.

Overall, Ethereum’s climb is not just something to watch – it’s definitely turning heads in the broader crypto landscape lately.