[Ethereum Price Analysis: ETH price approaches $2,500, but bullish outlook remains in doubt]
Ethereum has been consolidating within a range above $2,000 recently, with price swinging between the $2,700 resistance and $2,200 support. While the market has made several unsuccessful attempts to break above the upper limit, the $2,200 support area could be a target in the coming weeks. However, the RSI indicator suggests that bears are losing momentum and a reversal may be imminent.
On the four-hour chart, the price is in a symmetrical triangle consolidation pattern, with each boundary being tested twice. A break below $2,500 and a retest of the lower trendline could trigger greater volatility.
Ethereum’s Open Interest (OI) shows that trader participation is closely correlated with price. OI grew significantly from late 2023 to early 2024, reflecting market activity and bullish sentiment. However, a sharp decline in mid-2024 hints at a major bearish event leading to an exit from the market.
While both OI and prices are currently below previous highs, the market could still see a sustainable rally if spot demand is strong.
