Ethereum Recovers Above $3,500 as Liquidations Mount and Open Interest Surges Toward Multi-Month Highs

Key Takeaways

• Ethereum rebounds 3.7% to $3,520 after sharp liquidations.
• $56 million in ETH positions wiped out, mostly shorts.
• MACD and RSI hint at improving momentum.
• Major resistance stands at $3,700, per on-chain data.
• Open interest growth signals rising trader participation.
• Tom Lee projects ETH could reach $15,000 by year-end. 

The world’s second-largest cryptocurrency rose more than 3% in the past 24 hours, trading around $3,520 with a market capitalization of $424 billion, according to CoinMarketCap data.

Despite the weekly losses of nearly 9%, Ethereum’s rebound suggests that investor sentiment may be stabilizing as traders prepare for the next major move. The surge also coincides with an increase in open interest, showing that market participation is growing again after a period of cautious trading.

Liquidations Shake Out Bears

Data from CoinGlass shows that Ethereum recorded more than $56 million in liquidations over the past 24 hours, with short positions accounting for roughly $43 million of that total. Longs represented a smaller portion at around $13 million, suggesting that most traders betting against ETH were forced to close their positions as prices turned higher.

The flush-out of short sellers typically marks a shift in momentum, especially when combined with rising open interest. It reflects that traders are re-entering the market with fresh positions, potentially preparing for a continuation of the rally if key resistance levels are breached.

Open Interest Points to Rising Market Confidence

Ethereum’s open interest has been on a steady climb since mid-October, reaching levels comparable to previous peaks. The surge indicates that derivative traders are positioning for volatility ahead, with the recent uptick favoring the bulls. Historically, increases in open interest combined with price gains have often preceded strong rallies in ETH’s spot price, especially when coupled with liquidations on the short side.

Analysts warn, however, that excessive leverage could also amplify risk if prices face rejection around resistance zones.

Technical Indicators Show Early Recovery Signs

From a technical standpoint, Ethereum’s daily chart shows encouraging signs. The MACD indicator, which has remained in bearish territory for weeks, is now flattening out. If the blue MACD line crosses above the signal line, it could signal the beginning of a new upward trend.

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Meanwhile, the Relative Strength Index (RSI) has recovered to 41, up from oversold levels near 30, indicating improving buying momentum. Price action on the daily chart also shows that ETH found strong support near $3,300, a level that previously acted as a breakout zone during the summer rally.

Resistance Builds at $3,700

On-chain data supports the view that $3,700 is now a critical price ceiling for Ethereum. Analyst Ali Martinez highlighted that approximately 869,000 ETH were accumulated around $3,700, forming a dense resistance wall. Breaking through that level could open the path toward $4,000, where sellers are likely to take profit again.

Until then, ETH may oscillate between $3,300 and $3,700 as traders assess macroeconomic conditions and ETF inflow data.

Tom Lee’s $15,000 Target Fuels Debate

A bold forecast from Fundstrat’s Tom Lee reignited excitement in the Ethereum community this weekend. Shared by Crypto Rover on X (formerly Twitter), Lee’s projection suggests ETH could reach $15,000 by December, a nearly fivefold increase from current levels.

While many analysts view the target as highly optimistic, Lee’s reputation for long-term market foresight keeps investors watching closely. His prediction comes as Ethereum’s fundamentals continue to strengthen, with institutional adoption and DeFi growth expanding across Layer 2 ecosystems.

Futures Data Suggests Renewed Accumulation

The derivatives market shows increasing conviction that the recent correction may have been a short-term shakeout. Rising open interest, coupled with short liquidations, implies that traders are once again accumulating exposure to ETH. If funding rates remain balanced, this could indicate a healthier rally ahead without extreme speculative risk.

Broader Market Context

Ethereum’s rebound mirrors a broader uptick across major cryptocurrencies, as Bitcoin steadies near $101,000. The recovery follows weeks of volatility triggered by shifting expectations over potential U.S. rate cuts and the performance of risk assets like AI and tech stocks.

Ethereum’s ability to hold above $3,500 will be closely monitored in the days ahead. A sustained move higher could draw fresh capital from both retail and institutional investors seeking to front-run the next major breakout.

The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

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