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Ethereum is forming a bullish cup-and-handle pattern with neckline resistance at $2,752.
Derivatives data shows a surge in volume and open interest, hinting at a potential breakout.
If ETH clears resistance, it could rally toward $3,255 or even $4,100 in a bullish scenario.
As of June 3, 2025, Ethereum (ETH) is trading around $2,618, consolidating within a well-defined range just below a critical resistance zone. The broader technical outlook is turning increasingly bullish, with a textbook cup-and-handle pattern forming on the daily chart. Supported by strong derivatives activity and improving trend signals, Ethereum may be on the cusp of a breakout that could target levels well above $3,000.
Ethereum's price has steadily recovered from its Q1 lows, forming a rounded bottom that extends from February through May. This structure forms the "cup" portion of the bullish cup-and-handle pattern.
The current sideways consolidation marks the “handle,” with the neckline resistance sitting near $2,752, a level that also coincides with the 61.8% Fibonacci retracement from the previous decline.
Supporting the setup, ETH remains well above its 200-day EMA at $2,459, a level that has acted as reliable support during recent pullbacks. Additionally, the 50-day EMA has crossed above the 100-day EMA, an encouraging bullish signal that suggests increasing upward momentum.
The RSI is hovering around 61.55 and showing signs of a hidden bearish divergence, indicating that despite the bullish pattern, momentum is weakening slightly. A failure to hold current levels could push ETH down toward the 50% Fibonacci support at $2,386 or even further to the 38.2% level near $2,098 if sentiment sours.
On the upside, a confirmed breakout above $2,752 could pave the way for significant gains. The next major target would be at $3,255. In a more aggressive bullish scenario, especially if altcoin momentum picks up, ETH could aim for a full retracement back to the $4,108 level
Ethereum’s derivatives data reflects growing interest and cautious optimism. According to Coinglass:
Trading volume has surged by over 51.46%, hitting $70.97 billion.
Open interest has increased by 3.15% to $35.60 billion, signaling a rise in trader positioning.
Options volume has grown by 22.17% to $771.41 million, while options open interest stands at $7.37 billion, up 1.38%.
These increases in both futures and options activity indicate that institutional and retail traders alike are preparing for a potential move, most likely a breakout. The OI-weighted funding rate is modestly positive at 0.0046%, showing a slight premium for long positions.
Interestingly, liquidation data suggests short-term volatility remains a risk. Long positions were liquidated for over $25 million in the last 24 hours, compared to $15.66 million in shorts.
The long/short ratio stands at 0.9767, showing a marginal bearish skew. However, examining individual exchange data, particularly Binance, reveals that top traders are heavily skewed toward long positions.
The cup-and-handle pattern forming on Ethereum’s chart, along with increasing derivatives activity and long positioning from institutional-grade traders, suggests a breakout above $2,752 could soon be in play. The consolidation under this level, supported by the 200-day EMA, indicates that ETH is building strength rather than losing it.
While technical caution exists due to RSI divergence and high long liquidation volume, the broader setup leans bullish. A clean breakout with increased volume and positive funding rates could quickly catapult ETH toward the $3,000 - $3,250 range.
Also Read: Will XRP Overtake Ethereum in 2025? Battle for the Altcoin Crown Intensifies
Ethereum is approaching a technical crossroads. Supported by favorable patterns and derivative signals, the second-largest cryptocurrency by market cap may soon attempt a breakout past $2,752. Traders and investors should closely watch the handle structure and funding trends over the coming days. If confirmed, this could signal the beginning of ETH’s next major leg higher, potentially bringing the $3,000 - $4,000 range into play for Q2 and Q3 of 2025.
Whether Ethereum delivers on this setup depends on broader market sentiment and volume confirmation, but the foundation is undeniably strong.
Also Read: Will ETH Hit $3K? Ethereum Whale's $110M Move Fuels Bullish Sentiment
