Ethereum Eyes $6K as It Tests Crucial $4K Resistance Level

• Ethereum’s monthly hammer candle historically signals major upward trend.
• CME futures open interest hits record $7.85B, indicating demand.
• Key resistance at $4,000 could lead to breakout or rejection.

Ethereum is approaching a pivotal moment as it nears the $4,000 resistance level. At press time, Ethereum (ETH) is currently trading at $3,885.36. The price recently tested the $3,925 level, which now acts as a near-term resistance. 

Analyst Crypto Patel noted that $4,000 is a key high-timeframe resistance point. A confirmed breakout above this zone could open the path toward $6,000.

Crypto Patel warned that a rejection here could cause a decline toward the $3,200–$3,500 support area. Traders are closely watching this zone as it may determine Ethereum’s mid-term trajectory. The immediate support lies around $3,831, where the price previously rebounded.

Monthly Hammer Candle Confirms Bullish Reversal Signal

Crypto Patel also confirmed on May 4th  a monthly hammer candle on Ethereum’s chart. Historically, such patterns have preceded large price rallies, with previous hammers leading to 3x to 59x gains. This technical formation often marks the end of a downtrend and the start of a strong upside move.

Rising volume supports the bullish narrative, suggesting buyer conviction. Ethereum is exiting its long-standing accumulation range, backed by multi-year bear market support. Investors who entered under $1,500 are now seeing returns close to 3x, positioning them strongly if the rally continues.

CME Futures Open Interest Hits Record $7.85 Billion

CryptoQuant’s latest data from analyst Maartunn, Ethereum’s CME Futures Open Interest has reached a new high of $7.85 billion. The increase is spread across all contract durations, with notable accumulation in 1–2 month and over 6-month categories.

Historically, such spikes in futures open interest have signaled the start of strong upward price movements. The rising interest suggests that large-scale traders are positioning for a potential breakout. ETH remains well above $2,800, reinforcing the bullish structure from both technical and institutional angles.

Ethereum’s price action, technical chart patterns, and futures data all point to a critical period ahead. Whether it breaks $4,000 or pulls back, the next few sessions could define its trajectory for the rest of the year.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.