Ethereum is turning heads once again, and this time it is because the price has surged toward the crucial $4,000 mark. Currently priced at $3,933.77, this largest altcoin by market cap has added over $474 billion to its valuation. This has been influenced by strong institutional flows and technical momentum. With trading volume shooting up a remarkable 26.18% to nearly $30 billion. Could this be the breakout moment Ethereum bulls have been waiting for? Or will the FED meet decide ETH’s next move?

Institutional Bets Grow Louder

Let’s get into on-chain, Ethereum CME Futures open interest has surged to a historic high of $7.85 billion. This rapid growth in open interest signals strong speculative activity in the crypto market and amplified institutional involvement. This is a trend often associated with upcoming price volatility.

Successively, each spike in open interest aligns with price appreciation, highlights that leveraged long positions are dominating. If Ethereum breaches above $4,062, roughly $1.31 billion in short positions could be liquidated. This could trigger a cascade of buy orders. Conversely, a dip below $3,687 puts $2.9 billion in long positions at risk, showing just how uncertain yet powerful the current positioning is.

Ethereum Price Analysis:

ETH price at the time of press is changing hands at $3,933.77 after brushing an intraday high of $3,934.75. Looking at indicators, the RSI sits at an overbought level of 72.03, while the price continues to ride the upper Bollinger Band. If bulls break through the $4,096.82 resistance zone, Ethereum could rally further toward fresh yearly highs.

However, a failure to maintain current levels could trigger a quick correction to support at $3,687, then to $3,585 or even $3,550 if selling pressure intensifies.

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