Ethereum nears a trendline breakout rally as whales accumulate while derivative markets show rising optimism.
As Bitcoin returns with a bullish turnaround, Ethereum holds its crucial demand zone near $1,800 despite increased global market volatility. With the sudden resurgence of bullish sentiment, Ethereum is close to breaking above a local resistance trendline. Will this propel the ETH price above the $2,000 psychological mark?
Ethereum Nears Trendline Breakout, Targets $2,000
On the daily chart, Ethereum is trapped within a falling channel pattern. Holding its ground at the $1,800 supply zone, Ethereum is making multiple low-price rejection candles.
The quick turnaround from a low of $1,750 has resulted in several long-tail candles. This reflects the bullish struggle to maintain the $1,800 mark.
Currently, Ethereum is trading at $1,826, with an intraday recovery of 0.55%. This marks an extension to the 1.21% recovery from the previous night.
With two consecutive positive candles, Ethereum hints at a potential morning star pattern for a bullish trend reversal. Additionally, Ethereum is close to breaking above the local resistance trendline, signaling further upside potential.
Supporting the bullish case, the daily RSI is slightly above the oversold region, showing an uptick. This indicates a minor surge in bullish momentum, suggesting a possible recovery ahead.
Ethereum Network Slowdown Warns of Bullish Failure
Despite the potential for a bullish breakout rally, Ethereum’s network has experienced a major slowdown in Q1 2025. According to EgyHash on CryptoQuant, active Ethereum addresses have significantly declined, dropping to 333K compared to a peak of nearly 600K in late January.
Moreover, Ethereum’s burnt fees over the first quarter have dropped to their lowest point ever. Data from CryptoQuant highlights the inflationary pressure post-merge, exacerbated by the declining burn rate after the Dencun upgrade.
As total fees burnt decline, the risk of hyperinflation rises for Ethereum, which could result in a significant price decline.
Whales Buy ETH Dip
Despite the Ethereum network’s underperformance, whales are buying the dip. According to a recent tweet from IntoTheBlock, Ethereum whales, including the largest ETH wallets, have added over 130,000 ETH to their holdings in the past 24 hours.
Additionally, large holders in NetFlow have maintained an overall positive flow over the past seven days, with the exception of an outflow on March 30. As a result, crypto whales remain confident in a potential Ethereum bounce-back despite the network’s underperformance.
Ethereum whales are buying the dip, with the largest $ETH wallets adding over 130k ETH to their wallets yesterday pic.twitter.com/hLbDhO3Z6n
— IntoTheBlock (@intotheblock) April 3, 2025
Bullish Sentiment Surge in Ethereum Futures
As Ethereum holds its ground at $1,800 with the possibility of a bullish comeback, Ethereum futures are seeing increased trader interest. According to Coinglass, Ethereum’s open interest has increased by 3.56%, reaching $20.63 billion.
Ethereum Derivatives
Furthermore, the funding rate has recently flipped negative at -0.0050%. This indicates that long-term position holders are getting paid to maintain their bullish positions.
Over the past 4 hours, a sudden shift in the funding rate coincided with a surge in long positions. In just 12 hours, the long/short ratio increased from 46.99% to 55.71%, highlighting the growing bullish influence in Ethereum futures and increasing the likelihood of a leverage-driven rally.
ETH LongShort Ratio Chart
Conclusion
Based on the pivot point indicator, the trendline breakout rally will face immediate resistance at the center pivot line, priced at $2,042.
Optimistically, a breakout from the larger falling channel pattern could drive Ethereum prices to $2,839. On the flip side, the crucial support levels are at $1,737 and $1,549.
