All eyes are focused on Ethereum as it takes the top spot on CoinMarketCap among the trending tokens. ETH crossed above the $4,300 resistance level after being rejected three times consecutively during the week. The bulls pushed the prices past this obstacle with volume, which suggests that this could be a lasting trend.
After the massive push by the bulls, the token is trading above $4,600, having gained more than 25% value in the last 7 days. But wait, what makes this increment special? Unlike the other short-lived rallies, there is solid evidence that this is going to last and reach new altitudes. Usually, short rallies don’t have volume backing the rise; however, in this case, it’s not just the volume but also the OI is increasing with the prices.
According to the data from the analytics platform, Coinglass, there was a massive increase in the open interest from last month. The ETH exchange futures OI was at $38 billion on July 13; however, after a month, this figure hit nearly $65 billion, reflecting the confidence of the investors in the token. The OI represents the number of open contracts in the market, and when this number rises, it signifies that more money is flowing into the asset.
Although the open interest contracts include short and long positions, however, the rising prices in tandem with the increasing OI denote that there are more long positions than short. This means that many traders are opening long future contracts expecting the prices ot further rise. So how far can the prices rise?
Ethereum’s uptrend is supported by volume as it presses to a new all-time high of $7000
Let’s do the maths on the technical side of ETH. On the daily chart, the token has just broken out of the broadening wedge, and ETH might encounter resistance near $4,800. As this resistance level is close to the ETH all-time high, there will be massive resistance.
This is partly psychological—many traders remember it as the point where the price peaked before, and those who bought near that top but held through the drop may take the chance to sell and break even. On the technical side, chart watchers and trading algorithms often treat the old high as a sell trigger, adding to the pressure.
Whether the token stalls or breaks through depends on market momentum; a strong push with high trading volume can pierce the resistance and turn the old ATH into a new support level. The price-volume trend indicator, which measures the strength of the trend, is rising along with the rising prices. This suggests that there is buying pressure building up, and the trend will be ongoing. Once ETH breaks above $4,800, it will establish a new all-time high and may target $7,000 in the longer run.
