Ethereum (ETH) Price Traded at Around $2380 After Breaking Past Critical Resistance

Ethereum (ETH) price traded at around $2380 after going past critical resistance. That suggests it could climb to $3000 and $4000.

The price of Ethereum (ETH) has surged past a critical resistance level, suggesting it could climb to $3,000 and $4,000. The sharp upmove started after the Federal Open Market Committee’s decision to hold interest rates steady on May 7.

As the crypto market recovered from the recent downturn, and with the macroeconomic outlook improving, the stage is set for a significant upside move.

What Happened: According to crypto analyst Ali Martinez, Ethereum price broke through the crucial $1,860 resistance. At this level, 4.54 million wallets hold 5.58 million ETH.

The top altcoin has finally breached a significant supply wall which had been capping its progress for the past few weeks, marking a massive change in market sentiment.

As the price has shot up above this level and is now remaining above it, Ethereum could rally long term with potential goals for $3,000 and $4,000.

Another crypto analyst, IncomeSharks, pointed out that ETH price has also cleared its second diagonal resistance, which ultimately confirms a broader trend reversal.

The chart showed ETH moving steadily higher after multiple buy signals along the lower trendline with the next major resistance zones at $3,000 and $4,000 traders are eyeing a potential multi-month rally if the current momentum holds.

Why It’s Important: Javon Marks noted a major bullish divergence in the price chart for Ethereum, a classic reversal pattern signaling forthcoming major price recovery.

According to Javon’s analysis, ETH had a double bottom with momentum indicators, such as the Relative Strength Index (RSI), beginning to rise, indicating a bullish divergence. This technical arrangement is usually a sign of a new trend commencing with price targets much higher than the current price.

Also, on-chain data supported this bullish outlook. At the time of writing, Ethereum’s open interest surged by 2.65% to about $21.35 billion over the past 24 hours as $400 million worth of new capital joined ETH futures.

The rise in open interest meant traders were positioning for a larger move. As technical analysts pointed to $3,000 and $4,000 as possible targets, traders prepared for a substantial price swing.

Derivatives market also showed a strong bullish bias for Ethereum. Binance’s ETH/USDT long/short ratio stood at 2.1486, while OKX traders showed an even more aggressive stance with a ratio of 2.26.

Those figures indicated more than twice as many traders are long versus short, which signaled a strong belief in further upside. For top traders on Binance, ratios of long/short positions have risen to 2.8153, indicating increased confidence in Ethereum’s upward slide. It is consistent with market sentiment, as traders are setting up for further upside.

The long exposure and the increase in open interest suggest that the market is anticipating a significant price move in the coming weeks.

Moreover, liquidation data also supported this bullish trend. ETH shorts at press time accounted for $14.33M in long liquidations and $6.07M in ETH short liquidations, showing that traders who were betting against a price recovery have been squeezed out.

What’s Next: Ethereum price traded at around $2,380 at the time of writing as it recently passed a major resistance level. The crypto is now aiming for the next resistance at $2,600.

However, Ethereum price is expected to continue its recent momentum to avoid a pullback towards the $1,860 support zone, which has now flipped from resistance.

In the near term, with the Fed’s rate pause as the catalyst, this might just be the beginning of Ethereum’s recovery. As technical indicators improve and market sentiment turns bullish, the outlook for the altcoin strengthens, suggesting a potential breakout in the coming months.