Ethereum is above $2,400, with a potential breakout of $2,700, aiming for a 50% rally on the $4,000 mark.
As Bitcoin rises 1% to hit a new all-time high, Ethereum outperforms with a 3% surge and is currently trading at $2,632. The main Altcoin forms a round bottom pattern, hinting at potential breakouts and 50% meetings.
Ethereum price analysis
On the daily charts, Ethereum has maintained a side-facing trend between $2,400 and $2,700 over the past week. However, the short-term consolidation is $2,443 above the 200-day EMA, indicating underlying strength.
In the wider picture, Ethereum appears to complete a round bottom pattern. The neckline is lined up at 50% Fibonacci retracement levels at nearly $2,700. Breakout above this neckline can trigger a 50% meeting.
This potential rally is calculated by adding pattern depth to the breakout point. Based on the Fibonacci analysis, the rising target is consistent with 100% Fibonacci levels, close to $4,000.
Supporting this bullish scenario, RSI has surged into over-acquired zones, reflecting its strengthened momentum. Additionally, the 50- and 100-day EMA approaches bullish crossovers, strengthening the upward outlook.
On the downside, a breakdown below the 200-day EMA disabled the bullish setup and allowed Ethereum to be pushed down to a 50-day EMA, close to $2,154.
Rising Optimism boosts Ethereum derivatives
As Ethereum approaches a potential breakout, the derivatives market reflects a growing bullish sentiment. Open interest has skyrocketed nearly 20% to $32.444 billion, indicating an increase in trader participation.
Ethereum Derivatives
This bullish sentiment is further confirmed by a positive funding rate of 0.0041% and $32 million in the short liquidation of the past 12 hours, compared to just $10 million over the past 12 hours. According to Coinglass data, this reflects a bullish story that can promote leveraged rally.
Analysts target $3,000 with bullish pattern breakout
Crypto analyst Ali Martinez shares an optimistic post about Ethereum Price Rally, targeting a potential spike to $3,000. Analysts highlight breakouts of inverted head and shoulder patterns in hourly time frames.
#ethereum $eth exceeds $2,588 resistance, which could lead to bullish moves to $3,000. pic.twitter.com/yrrhaoyhnk
– Ali (@Ali_Charts) May 21, 2025
Martinez is hoping to move above the 1.78 Fibonacci level, and expects the $3,000 mark to be a likely target. However, Ethereum will need to maintain support beyond the $2,585 neckline to confirm and maintain this bullish breakout.
