According to Glassnode, Ethereum’s market cap of $123 billion is trading only 0-20% above cost basis. Notably, there is intense investor interest in the $2,300-$2,500 range. On the other hand, in April 2025, the average ETH gas fee dropped to $0.16, the lowest level since 2020. 

Ethereum Technical Indicators Point to Bullish Momentum 

CryptoQuant analyst Ibrahim Cosar identified a bull flag formation in Ether technical analysis, signaling an upward move after consolidation. Ether has been trading between $2,400 and $2,700 for the past three weeks, setting the stage for a potential price breakout. Cosar also emphasized that ETH is holding firmly above the 200-day Exponential Moving Average (EMA). The daily RSI remains below the overbought threshold, showing slight momentum loss, but still supports an upward breakout. 

The largest share of #ETH market cap – $123B – sits just 0–20% above cost basis. That cohort swelled from $2.3K to $2.5K, meaning even a modest price drop could flip a large chunk of supply into loss.
Despite recent gains, $ETH remains in a fragile position. pic.twitter.com/5Ay5Jx5Qv5

— glassnode (@glassnode) May 27, 2025

This indicator is historically associated with strong market sentiment and price increases. Furthermore, analyst “Elcryptotavo” noted that if Ethereum’s open interest surpasses Bitcoin’s, it could indicate a market peak. However, ETH has not reached that threshold yet, suggesting room for further gains. 

Additionally, activity in ETH derivatives market is drawing attention. The rise in open interest is backed by a 40% increase in trading volume, reaching $79.51 billion. The trend of investors entering long positions strengthens bullish expectations. As a result, Ethereum’s technical indicators and market dynamics point to a potential short-term breakout toward the $3,000–$3,600 levels. According to the analyst, if momentum continues, new all-time highs for ETH could be within reach. 

Ethereum founder Vitalik Buterin has proposed a new structure for the Ethereum Virtual Machine (EVM): the use of RISC-V, a simpler and more efficient coding architecture. This change aims to make Ethereum faster, more flexible, and future-proof—enhancing usability for developers and providing a stronger long-term infrastructure. This development is also seen as a catalyst for Ethereum’s continued rise. 

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