Is Ethereum Gearing Up for a ‘Most Hated’ Rally to $6,000?

TLDR:

• Ethereum price showing bullish momentum, approaching $2,650 resistance
• Analyst predicts potential “most hated rally” to $6,000
• Open interest for ETH futures hit all-time high
• Inverted head and shoulders pattern forming on price chart
• Australian spot ETH ETFs launched recently

Ethereum, the second-largest cryptocurrency by market capitalization, is approaching a critical resistance level around $2,650 as bullish momentum builds in the market. Recent price action and market indicators have led some analysts to predict a potential major rally, with targets as high as $6,000.

The Ethereum price has been steadily climbing in recent days, moving above key levels including $2,550 and briefly touching $2,650 before a slight pullback.

If $ETH leads the pump, it will be the most hated rally ever.

Everyone hates Ethereum except me and Vitalik.

You’re all going to be stuck in meme coins, unable to sell due to lack of liquidity, watching Ethereum pump while you cry in your basement.

— Poseidon (@CryptoPoseidonn) October 14, 2024

At the time of writing, ETH is trading just above $2,600, having formed support around the $2,535 level. A bullish trend line has emerged on hourly charts, suggesting further upside potential if buyers can overcome nearby resistance.

One notable development supporting the bullish case is a significant spike in open interest for Ethereum futures contracts. According to data shared by crypto analyst Byzantine General, open interest recently hit an all-time high. This surge in trading activity and speculation around future ETH price movements could be a precursor to increased volatility.

It's nuts that $ETH open interest is making a new high when price isn't anywhere near ATH.

There's a crazy move in the making. pic.twitter.com/36mkWkkWNY

— Byzantine General (@ByzGeneral) October 14, 2024

The technical picture is also providing reasons for optimism among Ethereum bulls. Chart analysis reveals the formation of an inverted head and shoulders pattern over the past two weeks. This pattern, typically seen as a bullish reversal signal, suggests ETH may be poised for a breakout if it can clear the neckline resistance around current levels.

Adding fuel to the bullish narrative, crypto influencer Poseidon made waves on social media by declaring that an ETH-led market pump “will be the most hated rally ever.”

The analyst humorously noted that despite Ethereum’s market dominance, many investors dislike the asset – with exceptions including himself and Ethereum co-founder Vitalik Buterin.

While some view these predictions with skepticism, there are fundamental factors that could support further upside for Ethereum. The recent launch of spot Ethereum ETFs in Australia marks another step toward mainstream adoption and could drive increased institutional interest in the asset.

The $2,650 level represents a key hurdle for ETH in the short term. A decisive break above this resistance could open the door for a move toward $2,680 and potentially higher targets. On the flip side, failure to breach this level could lead to a pullback, with support seen around $2,535 and $2,500.