Ethereum Ready for an Upward Breakout

The chart shows Open Interest at ≈ 7.8B and the price hovering around $3100. This level is neither extremely low nor extremely high; we can infer that the market is maintaining its positions.

Recently, the price has been trending slightly upwards. Open Interest is also increasing. This means that while new positions are being opened, old positions are also being maintained. Investors in the market are not without positions. Volatility is increasing, and a squeeze is forming.

Open Interest is recovering above the SMA(30), SMA(50), and SMA(100) averages. This indicates a renewed willingness to take risks in the leveraged market. If the price remains above $3000 and the Open Interest increase continues gradually instead of sudden jumps, it will produce a controlled upward movement supported by the spot market. In this case, the price will continue its upward movement up to the $3700 level. This is my bias.

Ethereum is currently preparing for an uptrend. As Open Interest increases, investor demand increases. We may see a sharp movement in the short term. The market will either be relieved by a positive breakout or cleansed by liquidation. My expectation is that the $3324 resistance will be broken positively, leading to a continuation towards $3700, after which it will revert to the main downtrend. $ETH