Despite being the second-largest cryptocurrency by market cap, Ethereum (ETH) has fallen short of expectations during this bull cycle. Unlike Bitcoin and its rival altcoins, which have achieved impressive gains and reached fresh highs, ETH has been unable to reclaim its 2021 peak.

However, a much-anticipated bullish reversal could soon change this narrative.

New ATH For Ethereum

According to the latest analysis by CryptoQuant, there has been a notable rise in Ethereums open interest (OI), which hinted at a potential breakout as well as a possible bullish rally. The open interest metric, which tracks active futures contracts across exchanges, has climbed steadily and reached record levels. This surge is indicative of heightened trader activity, with a significant increase in long positions being opened.

However, it is important to note that Ethereums price has not yet mirrored this uptick in futures activity, creating a divergence between market expectations and actual price movements. As per the on-chain analytic platforms data, this imbalance indicates mounting pressure in the market.

To top that, the elevated open interest also raises the probability of liquidation cascades, which could trigger abrupt and substantial price swings.

While the precise direction of the breakout remains uncertain, prevailing sentiment leans bullish. If Ethereum overcomes key resistance levels, it may ignite a sustained rally, potentially setting a new trend in the market.

Breakout Could Push ETH to $20K: Analyst

Ethereums underperformance compared to other top altcoins sparked frustration among its community. Additionally, criticism of co-founder Vitalik Buterins periodic ETH sales, centralization concerns tied to major holders, and regulatory compliance issues have fueled doubts about Ethereums future trajectory.

Despite these challenges, Santiment observed that this negativity could create a rally opportunity, as markets often move opposite to sentiment.

This aligns with CryptoPotatos recent report, which also signaled that Ethereum may be gearing up for a significant comeback, with analysts predicting potential price targets of $4,000 to $20,000 if it breaks critical resistance at $3,550. The crypto asset saw a 4% surge in the past 24 hours, trading a little over $3,400.

This uptrend was fueled by a broader crypto market rally and increased holdings by Trump-associated World Liberty Financial, which recently added 3,079 ETH to its portfolio. Optimism also stemmed from President Trumps executive order to explore a National Digital Asset Stockpile, potentially boosting crypto adoption.