Ethereum Surges 5.73% Past $2,800 on Short Squeeze and Technical Indicators

Ethereum's price has surged past the $2,800 mark, driven by a combination of technical indicators, speculation around a proposed Crypto ETF, and a powerful short squeeze. The rally was fueled by a golden cross pattern, where the 7-day Exponential Moving Average (EMA) crossed above the 30-day EMA, and a bullish pennant formation, both historically linked to upward price momentum. The Moving Average Convergence Divergence (MACD) histogram stands at +27.62, and the Relative Strength Index (RSI14) is at 65.18, indicating strong bullish momentum without entering overbought territory.

Ethereum's outperformance against Bitcoin and the broader crypto market triggered a wave of liquidations, with over $16.2 million in ETH short positions wiped out after breaking the $2,800 resistance. This cascade of forced buybacks was accompanied by a 5.73% rise in derivatives open interest and positive funding rates for perpetuals, signaling renewed appetite for leveraged long positions. The rally is also supported by a broader sector rotation favoring altcoins.

Looking ahead, while the Trump-linked ETF still lacks regulatory approval, the technical market structure remains intact. If Ethereum holds above the $2,698 level, it could pave the way toward a new target of $3,350. The cryptocurrency is currently consolidating its gains, with analysts suggesting that it could aim for a fresh move above $2,800. Key short-term resistance levels are identified near $2,750–$2,800, with the next significant levels around $3,000 and $3,200. The Fibonacci extension levels suggest clear upside targets, aligning with the technical indicators that show upward momentum building.

The RSI for Ethereum sits at 59.9, just shy of the crucial 60 mark that often precedes a stronger push. This indicates that Ethereum is not yet overbought, leaving room for further gains. The RSI is also comfortably above its moving average, showing that upward momentum is building again. Historically, when the RSI crosses 60 on the daily chart, it signals the start of a momentum phase that can last for several weeks. Analysts predict that if Ethereum's price breaks above $2,750 with volume, a move towards $3,200–$3,300 is technically realistic. This aligns with the Fibonacci cluster above $3,200 and suggests that Ethereum could see significant gains in the coming weeks. The current support zone around $2,400–$2,500 has been repeatedly defended, forming a solid base. As long as Ethereum's price stays above this floor, the short-term risk remains limited.

If the current consolidation resolves to the upside, Ethereum could revisit the $2,880 highs and possibly challenge the $3,000 zone. However, failure to break above this level could lead to a retest of the $2,500–$2,550 support zone. Unless this level is lost with heavy selling, the bias remains bullish. In summary, Ethereum's recent break above $2,800 signals renewed strength and potential for further gains. With strong technical indicators and a solid support base, Ethereum is poised for a move towards $3,200–$3,300 in the coming weeks. However, traders should remain vigilant and monitor the broader market for confirmation of the upward trend.