Key Takeaways:
- Famous investor, trader and key opinion leader (KOL) Ted Pillows predicts ETH will $4,000.
- Since the beginning of the year, open interest levels for ETH have increased by 2x.
- SharpLink Gaming purchased ETH worth $105 million, adding to the bullish sentiments.
The broader cryptocurrency market was slightly bearish last week as major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH) and XRP posted weekly declines of 3.4%, 8% and 7% respectively. However, the chances of interest rate cuts could rise with the weaker-than-expected jobs data being reported, which could eventually move the markets up.
Ted Pillows a crypto investor and KOL with over 191K followers on X, predicts ETH to reach $4,000. Pillows uploaded a tweet of ETH’s liquidation heatmap, which shows that the majority of liquidation orders have been placed close to $4,000.
Open Interest Doubles This Year
According to Pillows, the yellow lines placed on the heatmap act as a magnet for ETH to reach $4,000. The reason why Pillows believes ETH could reach $4,000 is probably because the large concentration of orders in the yellow lines could push ETH to that price due to market-making activities upon liquidations. However, the pull may weaken if buyers stall at nearer resistance or broader risk-off sentiment returns as a result of macroeconomic factors.
Followed by this tweet, Pillows shared another bullish tweet on ETH. Pillows tweeted about the open interest (OI) levels for ETH witnessing a massive surge since 2024, according to him.
Sooner or later all this built-up volume will explode and send Ethereum to new highs.
The OI levels for ETH by the end of 2024 were slightly over $22 billion. The present OI levels stand at $46 billion at the time of writing, which is a 2x increase since the beginning of the year. Moreover, by 2025 end of July the OI for ETH reached an all-time high. Based on Pillows’ tweet, the green line in the chart shows a massive buildup of leveraged positions in the futures market, which could propel the price of ETH, according to Pillows. Nonetheless, high OI does not always indicate a bullish sentiment as traders could be taking short positions as well. In cases of high OI when the prices move dramatically, it can lead to massive liquidations. Although such changes can go either way, the tweet by Pillows indicates a bullish bias: the pressure will most likely release upward, propelling ETH to or over $4,000.
Ethereum Technical Analysis
According to Pillows’ tweet, based on the weekly chart, Ethereum (ETH) shows a bullish breakout from a falling wedge pattern, which is a strong indicator of a possible rise. According to the chart, ETH has already retested the levels of $3,200. Pillows believes that ETH might shortly surpass $4,000, with potential targets of $6,500 or possibly $10,000 over time. As long as ETH maintains above the support zone, the outlook is optimistic.
Institutional Interest
According to a tweet by Pillows’, SharpLink Gaming (SBET), the first publicly listed firm to use ETH as its principal treasury reserve asset, has purchased ETH worth $105,000,000. Pillows emphasized this institutional buying by suggesting that –
The month of July was a significant year for spot ETH ETFs as it recorded the second-highest netflows at $5.43 billion since the inception of ETH spot ETFs. Spot ETH ETF witnessed negative netflows on August 1st, it is too early in the month to draw any definitive conclusions regarding investor sentiment.
Pillows is extremely bullish on ETH based on derivatives data, technical analysis and institutional demand. He projects ETH to reach $4,000 along with the possibility to reach higher long-term targets.
