Ethereum Price Forecast: Key Levels to Watch as ETH Reclaims $3,250 Support

Ethereum is on the move again, and investors are keeping a close eye on key levels as ETH hovers around $3,250. After a period of underperformance compared to Bitcoin’s impressive rally, Ethereum is gearing up for a potential surge as the altcoin season gains momentum.

According to a recent analysis on TradingView, ETH is showing signs of breaking out, with critical resistance and support levels playing a crucial role in determining its next move.

If Ethereum manages to break above the immediate resistance at $3,442, it could signal a bullish trend, with the next target set at $3,568. And if the momentum continues, we might even see ETH surpassing $4,000, driven by the excitement of the altcoin season.

But it’s not all smooth sailing for Ethereum. The support levels at $3,028 and $2,820 are crucial for maintaining the bullish structure. Failing to hold these levels could lead to a downward trend for ETH.

While Ethereum’s performance is closely linked to Bitcoin’s movements and overall market sentiment, the derivatives data for Ethereum remains optimistic. Despite a slight decline in trading volume and open interest, the options market is showing increased demand, indicating a positive outlook for Ethereum’s price potential.

Long positions are dominating the market, with strong bullish sentiment among traders. Short liquidations are on the rise, suggesting a short squeeze that could further drive Ethereum’s price upwards.

Currently trading at $3,315, Ethereum has seen a slight dip in the last 24 hours but remains up by 7% for the week. This resilience is attributed to renewed interest in U.S.-based spot Ethereum ETFs, which saw a significant inflow of funds on Friday, signaling a potential revival in institutional confidence.

Institutional players and whales are also showing their bullish outlook on Ethereum, with a notable accumulation of ETH by major investors in recent weeks. AI-driven forecasts predict a year-end price range between $3,800 and $4,200 for Ethereum, adding to the optimism surrounding the cryptocurrency’s future price movements.

Overall, the current momentum in the market has investors hopeful that Ethereum will continue to rise to new heights as the altcoin season gains momentum.