Is Ethereum Preparing For A ‘Most Hated’ Rally Toward $6,000?
TLDR
Ethereum price showing higher momentum, approaching $2,650 resistance, analyst predicts “much-hated rally” to $6,000 Open interest for ETH futures hits highs Inverted head and shoulders pattern forming on price chart Australian spot ETH ETFs launched recently.
Ethereum, the second largest by market capitalization, is approaching critical resistance around $2,650, building bullish momentum in the market. Recent price action and market indicators have led some analysts to predict a major rally with targets as high as $6,000.
Ethereum price has been rising slowly in recent days, including above key levels of $2,550 and touching $2,650 before pulling back a bit.
If $ETH leads the pump, it will be the most hated rally ever.
Everyone hates Ethereum except me and Vitalik.
All of you are stuck in meme coins and crying in your basement watching the ethereum pump fail to sell due to lack of funds.
— Poseidon (@CryptoPoseidon) October 14, 2024
At the time of writing, ETH is trading above $2,600, establishing support around the $2,535 level. A bullish trend line has appeared on the hourly charts, indicating further upside potential if buyers can overcome nearby resistance.
One notable development that supports the bullish case is the sharp increase in open demand for Ethereum futures contracts. According to data shared by crypto analyst Byzantine General, open interest recently hit an all-time high. This increase in trading activity and speculation surrounding future ETH price movements may be a precursor to increased volatility.
$ETH open interest is hitting new highs when price is nowhere near ETH.
There's crazy action in progress. pic.twitter.com/36mkWkkWNY
— Byzantine General (@ByzGeneral) October 14, 2024
The technical picture also leads to optimism among Ethereum bulls. Chart analysis shows that an inverted head and shoulders pattern has formed over the past two weeks. This pattern, especially as a bullish reversal signal, suggests that ETH may be ready for a breakout if it can resist a neckline around current levels.
Adding fuel to the transfer narrative, crypto influencer Poseidon has made waves on social media by claiming that an ETH-led market pump will be “the most hated rally ever”.
The analyst joked that despite Ethereum's market dominance, many investors dislike the asset — including him and Ethereum founder Vitalik Buterin.
While some view these predictions with skepticism, there are fundamentals that could provide further support for Ethereum. The recent launch of Ethereum ETFs in Australia marks another step towards mainstream adoption and could lead to increased institutional interest in the asset.
The $2,650 level represents a key barrier for ETH in the short term. A critical break above this resistance opens the door to a move to $2,680 and higher targets. On the downside, failure to breach this level could result in a pullback with support around $2,535 and $2,500 showing.
