Ethereum (ETH) is currently priced at approximately $3,065, with a 24-hour trading volume of $30 billion. The price has surged 9% within the last day and 4% over the past week.

$2,800 Support is Key

ETH is at a critical level that could influence its short-term trajectory, drawing attention to the $2,800 support level.

Crypto analyst CryptosRus stated:

“$ETH is sitting right on $2,800, one of the biggest support zones on the chart. Hold it → room back to $3,300 and even $3,900. Lose it → volatility at $2,500 HVN, then a real shot at $2,300.”
Translation: Losing the support might lead to further declines, but holding it could lead to recovery.

The price has bounced back after a recent downturn, yet it remains close to this crucial level. An upward trend is still needed, as traders look for confirmation of a rally towards $3,700.

High Leverage and Lower Open Interest

Data from Binance indicates that Ethereum’s leverage ratio has reached an all-time high of 0.57, as per CryptoOnchain. This reflects that many traders are employing borrowed funds. At the same time, open interest has fallen to $6.6 billion, implying considerable market correction.

This creates a complex scenario: while high leverage entails higher risk, the open interest drop suggests that many weak positions have been eliminated.

Short-Term Charts and Resistance

CRYPTOWZRD mentioned that the $3,055 level is now pivotal for intraday resistance. Although ETH has shown signs of recovery, it may be forming a potential double-top pattern.

“A bearish pullback followed by a bullish rebound will set up a quality long opportunity; otherwise, a fake-out could happen,” they concluded.
Translation: Traders are cautious about sudden price movements due to current market conditions.

Support at $2,880 is also notable. If ETH can maintain this support, traders might find opportunities for longer positions.

On the broader scope, ETH is starting to form bullish patterns, with anticipation of a breakout above $4,500. Institutional interest is also resurfacing, highlighted by BitMine, affiliated with Tom Lee, purchasing over 30,000 ETH, worth almost $92 million.

This reflects increasing attention from major investors, even while the cryptocurrency tests crucial support zones.