Ethereum (ETH) Price Jumps After Weeks of Slump, Helping It Regain Some Market Dominance

Ethereum's price has jumped after being stuck in a slump for several weeks, helping it in gaining some market dominance after hitting record lows.

The price of Ethereum (ETH) has risen quickly following a period of stagnation, which has also helped the coin to regain some market dominance after hitting lows not seen in several months.

The cryptocurrency market began to recover after U.S. Treasury Secretary Scott Bessent reportedly said in a private meeting that the trade tensions between the U.S. and China “can’t last much longer.”

As ETH began to recover strongly, whales were also seen getting more active, which could lead to increased price swings ahead.

Ethereum’s Open Interest Surges Over 12%

Ethereum saw a strong upward move in the past few hours, gaining over 10% in the last 24 hours as the cryptocurrency continued to recover. The sudden spike also led to several on-chain metrics surging.

According to data from Coinglass, around $127 million worth of Ethereum positions were liquidated in the last 24 hours. Of that, buyers lost about $34.2 million, while sellers were hit harder, closing out $92.8 million in short positions.

The price surge came after former President Trump said U.S. tariffs on Chinese goods “will come down substantially,” and Treasury Secretary Scott Bessent described the ongoing U.S.-China trade dispute as “unsustainable.” Both comments hinted that a resolution might be coming soon.

The bullish momentum also affected Ethereum’s derivatives market, with Open Interest (the total value of outstanding derivative contracts) surging by 12%, reaching over $21.5 billion. It indicates rising investor interest and bodes well for the recovery rally.

Additionally, funding rates for ETH perpetual futures went positive, increasing from 0.0018% on April 21 to 0.0087%, suggesting that traders are more optimistic about further price gains.

In another development, Ethereum’s market dominance also went up. On April 22, it dropped to just 7%, the lowest level since September 2019, according to TradingView. But after the recent price jump, its market share bounced back and climbed above 7.5% by April 23.

Furthermore, the large transaction volume surged by almost 400%, touching 4.64 million ETH.

Overall, the rising open interest and positive funding rates indicate that more money is flowing into the market, boosting buying pressure and potentially pushing prices even higher.

What’s Next for ETH Price?

Ether (ETH) has managed to rebound after dropping to the $1,500 level, where sellers struggled to maintain control. As the price fell, it encountered strong support around $1,530.

Sellers attempted to push the price lower, but buyers stepped in and pushed the price past some crucial short-term resistance levels. Now, the aim is to keep ETH above the $1,850 mark.

At the moment, ETH is trading at approximately $1,816, showing a gain of over 11% in the last 24 hours.

The technical indicators are also displaying strength from the buyers’ perspective, with the moving averages trending upward and the RSI (Relative Strength Index) indicating positive momentum.

If ETH can stay above the $1,850 zone, there’s a good chance we could see a move toward the $2,000 psychological level. Afterward, if that resistance is breached, it might pave the way for a steeper rally, potentially pushing past a bigger resistance zone around $2,500.

However, if sellers want to regain control, they'll need to push the price below the 20-day exponential moving average (EMA20). Breaking that level could lead to further declines, aiming for the $1,385 zone, which offers strong support.

Dropping below that area might signal a short-term shift in favor of the bears, increasing the likelihood of seeing lower prices in the near term.