Ethereum’s market dynamics are sending ripples through the crypto community as veteran trader Peter Brandt spots a potential rally on the horizon. If Ethereum manages to break past a rising wedge pattern, Brandt posits that the cryptocurrency could soar to unprecedented heights between $3,800 and $4,800—a prediction that has traders buzzing as of May 11, 2025.
Rising Wedge and Market Movement
Brandt’s analysis hinges on a “congestion” pattern—specifically, a rising wedge, which traditionally suggests a bearish outcome. Yet, if Ethereum defies expectations and breaks above this pattern, it could signal a bullish trajectory towards its descending resistance line. This optimistic outlook marks a shift from Brandt’s previous stance in 2024, and it arrives amidst a notable surge in Ethereum futures. From May 8 to May 11, open interest in these futures spiked by 42%, jumping from $21.3 billion to $30.4 billion. As it edges closer to the all-time high of $32 billion, the market’s heightened activity underscores a renewed trader engagement with ETH.
The enthusiasm isn’t confined to futures alone. Ethereum’s native token, ETH, opened its latest weekly candle at $1,807 and is now flirting with its highest 7-day returns of 38% since December 2020. This bullish sentiment is echoed by the token surpassing its realized price for accumulating addresses ($1,900), marking a profitable moment for many holders. Binance has emerged as a key player, driving significant buying pressure, further solidifying its role as the most active exchange for ETH traders. As explored in our recent coverage of Ethereum bulls showing interest as traders’ confidence in ETH’s $1.8K level improves, this renewed confidence is a significant factor in the current market dynamics.
Historical Context and Technical Analysis
Looking back, Ethereum’s higher-time frame (HTF) chart reveals a steady climb toward the 50 and 100-week exponential moving averages (EMAs) over recent weeks. Such movements have historically indicated a price bottom, yet they could also presage a minor corrective phase post-EMA retest. The altcoin’s interaction with Fibonacci retracement levels, particularly the 0.5 to 0.618 range, aligns with the $2,500 price mark—a critical juncture in its recovery trajectory. However, as ETH’s price surged parabolically in recent days, liquidity heatmaps have identified substantial buy-side liquidity between $2,200 and $2,400 following a short-squeeze that propelled prices up to $2,608.
Despite this bullish momentum, caution is advised. The taker buy-sell ratio—an indicator of perpetual swap trade sentiment—dropped below 1 on May 10, hinting at a short-term bearish outlook. This ratio measures the buy volume against sell volume, and a figure below 1 often signals that traders are treading carefully. With ETH consolidating under the $2,500 level, market participants might need to brace for potential fluctuations.
Future Implications and Market Sentiment
As the crypto world watches, questions loom: Can Ethereum sustain this rally, or will it encounter roadblocks? The current market sentiment is optimistic, yet some advise caution given the volatile nature of cryptocurrencies. The increased activity on platforms like Binance reflects strong trader confidence, but it also raises the stakes for those involved. For insights into the broader vision for Ethereum’s future, see our coverage of Vitalik Buterin’s vision for Ethereum: Pectra, Glamsterdam and beyond.
For now, Ethereum enthusiasts are keenly observing the charts, hoping for a breakout that could redefine the altcoin’s trajectory. As always, the path forward is uncertain, with risks and rewards hanging in the balance. Traders are encouraged to stay informed and vigilant, conducting thorough research before making any investment decisions. The crypto landscape—ever dynamic and unpredictable—continues to unfold, with Ethereum poised at a potential turning point.
Source
This article is based on: Ethereum chart pattern supports 'moon shot' rally to new price highs if confirmed — Trader
Further Reading
Deepen your understanding with these related articles:
- Bitcoin DeFi will have 300M users, beating Ethereum and Solana: Exec
- Restaking can make DeFi more secure for institutional traders
- Bitcoin eyes gains as macro data makes US recession 2025 ‘base case’
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
