Thomas Daniels
Veteran trader Peter Brandt has identified a potential bullish breakout for Ethereum (ETH), contingent upon the altcoin surpassing a key congestion pattern. Brandt highlighted a rising wedge formation—a chart structure often considered bearish—but suggested that a breakout above this formation could propel ETH toward the descending resistance line, with price targets in the $3,800 to $4,800 range.
This optimistic technical outlook aligns with Ethereum’s recent market performance. Between May 8 and May 11, 2025, Ethereum futures saw a significant 42% increase in open interest, rising from $21.3 billion to $30.4 billion. Approaching its all-time high of $32 billion, the surge reflects heightened trading activity and deepening investor engagement in the ETH derivatives market.
On the spot market, Ethereum opened its weekly candle at $1,807 on May 7 and has since delivered a notable 38% seven-day gain—the strongest weekly return since December 2020. The rally was driven largely by trading activity on Binance, currently the most active exchange for ETH, reflecting robust market confidence and sustained bullish momentum.
Despite these bullish indicators, short-term caution is advised. The taker buy-sell ratio, a key metric for futures market sentiment, fell below 1 on May 10. This decline signals a shift toward short-term bearishness, as the ratio measures the volume of aggressive buyers relative to sellers in perpetual swap markets.
From a technical perspective, ETH has retested the critical 0.5 to 0.618 Fibonacci retracement range, corresponding to the $2,500 level. Historically, this zone often marks the initial leg of recovery in a broader uptrend, though it may also precede a temporary correction. Supporting this view, liquidation heatmaps indicate strong buy-side liquidity between $2,200 and $2,400, suggesting potential support levels in the event of a pullback.
In summary, Ethereum appears poised for a potential rally if key technical resistance levels are breached. However, traders should weigh both the short-term signals of caution and the broader bullish structure when evaluating market entry or reallocation strategies.
