Summary
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Ethereum has shown strong recent performance, nearing a 38% seven-day return (its highest since Dec 2020) and surpassing its average holder acquisition cost, with significant buying pressure observed, particularly on Binance, indicating robust trader confidence.
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The Ethereum futures market has seen a 42% surge in open interest to $30.4 billion, nearing its all-time high, reflecting heightened trader engagement, while technically, ETH is retesting key moving averages and the $2,500 Fibonacci level, signaling a recovery phase.
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Despite the bullish outlook, short-term caution is warranted as the taker buy-sell ratio has dipped below 1 (indicating bearish futures sentiment), and liquidation heatmaps show significant buy-side liquidity between 2,200–2,400, suggesting potential consolidation below $2,500.
According to seasoned market analyst Peter Brandt, Ethereum’s price could experience a substantial upward trajectory, potentially reaching new peaks, if it successfully breaks out from a current “congestion” pattern.
Brandt specifically points to a rising wedge formation, which, if overcome, could propel Ether towards a price range of $3,800 to $4,800.
Potential for Significant Upswing if Key Pattern Confirmed
A temporary price decline might precede this, as indicated by the taker buy-sell ratio falling below one, suggesting a degree of caution among futures traders.
Recent Performance and Market Dynamics
Ethereum‘s native currency, Ether (ETH), commenced its weekly trading at $1,807 on May 7th and is currently approaching its most significant seven-day percentage gain (38%) since December 2020.
The price of Ether has also surpassed the average acquisition cost for its holders (realized price for accumulating addresses at $1,900), indicating profitability for many investors.
Market data indicates that a substantial portion of this buying activity originated from Binance, currently the leading exchange for ETH trading.
The heightened activity on Binance, coupled with an increase in ETH withdrawals from exchanges, suggests strong trader confidence, ample market liquidity, and sustained bullish sentiment.
Analyst’s Outlook and “Moonshot” Scenario
In a recent social media post, Peter Brandt highlighted a developing chart structure that he believes could set the stage for a significant Ethereum rally.
He identified a rising wedge on Ethereum’s price chart, a pattern typically viewed as bearish.
Brandt posits that a decisive break above this formation could drive Ethereum’s price towards a descending resistance line, targeting the $3,800 to $4,800 range.
This perspective represents a shift from Brandt’s earlier 2024 views and aligns with a renewed sense of optimism surrounding the altcoin.
Futures Market Activity and Technical Indicators
The Ethereum futures market has witnessed a notable 42% increase in open interest (OI), which rose from $21.3 billion to $30.4 billion between May 8th and May 11th, 2025.
This figure is nearing its all-time high of $32 billion and signifies increased market activity and growing engagement from traders.
Such a rapid surge in OI often indicates strong interest in Ether futures and can potentially lead to greater price fluctuations.
Examining Ethereum’s higher-time frame chart reveals a price increase on the weekly scale, with the altcoin moving towards its 50-week and 100-week exponential moving averages (EMAs) in recent weeks.
Historically, such a recovery can indicate a price bottom but might also signal the onset of a brief corrective phase following a retest of these EMAs.
Utilizing Fibonacci retracement levels, ETH has recently tested the 0.5 to 0.618 range, corresponding to a price around $2,500.
While this retest is seen as the initial phase of a recovery, a short-term pullback could occur before further bullish momentum develops.
Short-Term Caution and Liquidity Levels
Given the rapid, parabolic price increase of ETH in recent days, liquidation heatmaps indicate significant buy-side liquidity concentrated between $2,200 and $2,400, following a short squeeze that propelled prices to $2,608.
Furthermore, the taker buy-sell ratio, which measures buy volume against sell volume in perpetual swap trades, has started to decline, dropping below 1 on May 10th.
A ratio below 1 generally implies short-term bearish sentiment among futures traders.
Consequently, traders might adopt a more cautious stance in the coming days, with ETH potentially consolidating below the $2,500 mark.
Also Read: Ethereum Doubles to $2,400 After Pectra Upgrade
*Disclaimer*: We at Bitcoinleef.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice and viewers should consult their financial advisors before investing.
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