Ethereum Price At A Tipping Point, Can Surging Open Interest Fuel ETH Rally Past $3,000?

Ethereum price struggles to reclaim S/R at $2,400 as a bullish wave traverses the crypto market on Tuesday, for a breakout to $3,000.
By John Isige
Ethereum price prediction

Ethereum price steadied the uptrend, starting the New Year bullish with a breakout above $2,400. The leading smart contracts token extended the upper leg to $2,432, compelling investors to believe in the likelihood of a breakout to $3,000.

However, caution is advised especially among traders who intend to enter new long positions and those contemplating either closing current open positions or hanging onto the bullish theory.

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Ethereum Price Prediction: What Will It Take To Reach $3,000?

Crypto analyst Rekt Capital said via X that Ethereum “may have no choice” but to rally in tandem with Bitcoin, which broke above $45,000 on the first day of the New Year.

The analysts highlighted a breakout from a period of consolidation suggesting that it is only a matter of time before the tailwind behind ETH price intensifies resulting in a remarkable rally.

Meanwhile, Ethereum price is trading at $2,369 amidst a correction from the previous highs. The Relative Strength Index (RSI) reveals that sellers are gaining ground and fast. With a strength of 59 from highs close to the overbought region, the path with the least resistance could remain downwards.

If the short-term support at $2,360 holds, Ethereum price might cut short the forming downtrend while favoring the continuation of the uptrend to $3,000.

The 20 Exponential Moving Average (EMA) (in blue) and the 50-day EMA (in red) are in line to absorb the selling pressure if the decline intensifies over the coming sessions.

Ethereum price prediction
Ethereum price daily chart | Tradingview

The same RSI is slightly bullish in longer timeframes like on the daily chart. Based on the trend strength indicator, those holding Ethereum do not need to worry about the lower time frames’ ups and downs but focus on the potential gains likely to follow the consolidation between $2,200 support and $2,400 resistance.

The 20-day EMA reinforces support at $2,280 while the 50-day EMA holds to provide support at $2,179. If Ethereum price overshoots the pivotal level at $2,000, the 200-day EMA (purple) would be in line to prevent losses from reaching the local support at $1,850.

An incoming buy signal from the Moving Average Convergence Divergence (MACD) indicator could help steady the bullish thesis. As traders and investors seek more exposure to ETH, the path with the least resistance is bound to remain upwards.

Ethereum price prediction
Ethereum price prediction | Tradingview

Recommended for you: Ethereum (ETH) Price Poised for 2-3x Gains As Per These On-Chain Indicators

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Ethereum Open Interest Above $7.5B

The Ethereum futures open interest (OI) is growing steadily to hold above $7.5 billion on Tuesday, according to data provided by Coinglass.

Ethereum OI chart
Ethereum OI chart | Coinglass

The persistent rise in OI interest signals that investors entertain a positive outlook for ETH. This backs the bullish narrative in the short term, with Ethereum likely to blast off above $3,000 before the end of January.

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John Isige
John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.
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