Ethereum Surges 14% in Overnight Rally: Is $3,000 Next?

As Bitcoin reached $95,000 momentarily, the broader market recovery propelled the altcoin market segment to $1.24 trillion. With the broader market recovery, the Ethereum price surged to nearly $2,550.

The overnight recovery of 13.62% in ETH, has challenged the center pivot level and marked a positive cycle within a falling channel pattern. Will this recovery in Ethereum reach the $3,000 psychological mark?

Ethereum Recovery Starts Recovery Within Bearish Channel

In the daily chart, the ETH price action reveals a positive reversal within a falling channel pattern. The bullish recovery comes from the crucial support level at $2,200 near the support trendline and the horizontal level.

After multiple lower price rejections, Ethereum makes a bullish engulfing candle of nearly 14%. However, the buyers fail to surpass the center pivot level, resulting in an intraday pullback.

Currently, ETH trades at a market value of $2,354 with a pullback of 6.49%. Nevertheless, the overnight recovery has resulted in an uptick in the MACD and signal lines, seizing a potential bullish crossover.

Hence, the momentum indicator marks a significant change in the ETH price trend. Furthermore, it increases the possibility of Ethereum challenging the overhead trendline.

Open Interest Hikes to $20B, Bulls Grow Optimistic

With a quick recovery last night, Ethereum’s open interest took a massive surge to hit $20.65 billion. However, the surge in open interest failed to equalize the bullish and bearish positions at play.

This is highlighted by the long-to-short ratio over the past 24 hours, remaining at 0.9849. Furthermore, it marks a slightly greater number of bearish positions at play.

The liquidation in the past 24 hours has reached $182 million, with the intraday pullback fueling the long liquidations to $96.59 million. Nevertheless, the funding rate remains positive at $0.0049, as long-side traders anticipate a bullish comeback.

Ethereum Price Targets Extend to $3,800

As per the ETH price analysis, the bullish recovery in ETH within the falling channel pattern hints at a potential trend reversal. However, Ethereum must surpass the overhead trend line for a 4th to reinstate the bullish rally.

The pivot levels highlight the immediate resistance of the $3,000 psychological mark for a channel breakout rally. However, the R2 resistance level highlights an upside potential to reach the $3,800 horizontal level.

On the flip side, the crucial support for Ethereum remains at the $2,200 horizontal level, followed by the $2,000 psychological mark.

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