Ethereum Price Targets $3,800 Rally as Bulls Mount $1B Leverage

Ethereum price opened trading at an 18-day peak of $3,650 on Sunday January 5. Derivatives markets data shows ETH traders mounting additional leverage LONG positions, anticipating further gains in the week ahead.

Ethereum price advances above $3,600 as traders brace for more bullish action

Ethereum price has been on an upward trajectory since the start of 2025, mirroring the crypto market recovery. Compared to the likes of Solana (SOL), Cardano (ADA) Avalanche (AVAX) which recorded gains in excess of 20% and ETH price gains was relatively subdued as ETH ETFs recorded negative outflows of $32.4 million last week. ‘

Despite sluggish ETF demand, ETH price continued its impressive rally on Sunday, pushing its 2025 gains into double digits. As shown in the chart above, ETH began trading on January 4 at $3,656, marking an 11% increase from its 2025 opening price of $3,310.

Bull traders deploy $1B leverage as crypto rally enters Day 5

Having breached the psychological resistance at $3,600, recent derivatives market trends shows a significant boost in investors confidence. ETH bull traders displaying aggressive trading activity, signalling widespread expectation of more price in the week ahead.

In alignment with this narrative, Coinglass’ Liquidation Map chart below compares the value of LONG leverage positions to active SHORT contracts. This provides insights in real-time swings traders’ short-term sentiment.

The chart above shows that ETH bulls traders have mounted leverage LONG contracts worth $1.09 billion around the current prices. In contrast, active SHORT futures contracts amount to $835 million, 30% lower than the bullish positions.

Such a wide disparity reflects overwhelming positive sentiment among speculative traders, anticipating that Ethereum’s ongoing rally will persist in the week ahead.

With bull traders displaying high risk trading behaviour in the derivatives markets, in raises incentives to make rapid spot purchases. As bulls move to amplify profits, this could potentially drive up ETH prices towards $3,700 in the week ahead.

ETH Price Forecast: $3,700 Resistance Looms Large amid Slow ETF Demand

ETH price reclaiming the $3,650 level has boosted short-term traders confidence as shown by bull traders’ dominance in the derivatives markets. However, If ETH ETFs demand remains lackluster, Ethereum bulls could struggle to breach the $3,700 resistance, putting over $1.09 billion LONG leverage contracts at risk of liquidations.

In terms of short-term Ethereum price forecast, the Parabolic SAR and Bull-Bear Power (BBP) technical indicators on the ETH daily chart hint at a potential breakout towards $3,750.

The Parabolic SAR indicator moving below the current price confirms active buying pressure, positioning ETH for a breakout toward the next significant resistance $3,760, aligning with the upper-Bollinger band.

More so, the Bull-Bear Power (BBP) reflects a strengthening bullish bias, supported by sustained positive readings over the past four trading sessions.

Bollinger Bands analysis indicates $3,760 as a critical resistance level, coinciding with the upper band, while $3,464, near the middle band, serves as immediate support. A successful close above $3,760 could open the door for Ethereum to test $3,850.

Conversely, failure to sustain this uptrend may result in a pullback toward $3,464, with a breach of this support risking further declines to $3,168.

As ETH ETFs show negative flows, strategic traders could watch out cautiously for the $3,760 and $3,464 levels closely for potential shifts in short-term market sentiment.

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.