Ethereum Open Interest Signal Imminent Price Breakout: CryptoQuant

Ethereum (ETH) price is in the spotlight as the combined crypto market continues on its bullish trajectory. According to crypto analytics platform CryptoQuant data, a rising open interest has hinted that Ethereum may see a breakout soon. 

Ethereum Price and Open Interest Outlook

According to CryptoQuant analyst Shayan BTC, if the Ethereum price breaches a key resistance level, it could set the stage for a sustained ride. Per the analyst, ETH open interest has steadily risen in recent weeks. He noted that this implies growing participation in the futures market.

The rising Ethereum Open Interest aligns with Coinglass data, which shows a 6.5% surge in this metric over 24 hours. Per the data, a total of 9.71 million ETHs are now committed by futures traders. Per Shayan’s analysis, the Open Interest has jumped to its highest level in weeks, with traders opening long positions.

Amid this outlook, the CryptoQuant analyst sees a sharp divergence between open interest and price. Despite the jump in open interest, Ethereum’s price is yet to break its previous cycle’s high. This shows a large imbalance between market expectations and price action.

At the time of writing, the price of Ethereum jumped by 5.26% in 24 hours to $3,369. Despite this growth, the coin is down by over 30% from its all-time high (ATH) of $4,891.70. 

ETH Not Out of the Woods

According to the CryptoQuant analyst, the elevated open interest makes the coin susceptible to liquidation. This liquidation may trigger a drawdown, such as the crypto market selloff that impacted ETH earlier this week.

This outlook can push ETH prices in any direction that remains uncertain. However, Shayan BTC hinted that the current outlook suggests a potential rally is ahead. He noted that the price may chart a sustained rally if Ethereum successfully overcomes a crucial resistance level.

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Per an earlier ETH price analysis, the prospect of the coin hitting $10,000 was deemed likely. This projection hinges on the growing accumulation of World Liberty Financial and its likely inclusion in the national reserve.

Ethereum Foundation and Pectra Influence

Beyond the technical indicators in the price of the coin, the prospect of the coin may also be impacted by the activities of the Ethereum Foundation.

As reported earlier, there is a projection that ETH may jump to $6,000 if the Ethereum Foundation stops selling the coin. Over the past few months, the Foundation has initiated a series of ETH selloffs, which it has noted are part of its operational obligation.

Additionally, Ethereum’s prospects may be impacted by the upcoming Pectra upgrade. This upgrade, scheduled to launch in mid-March, seeks to enhance the scalability and security of the chain. Developers are in the final stages of the launch, the success of which may significantly impact its price outlook.