Bitcoin price is slowly rising towards the highs after it recorded one of the highest weekly closes in its history. Meanwhile, the Ethereum price surged above $2500 but has been failing to demonstrate a similar breakout, which could have elevated the levels to $2800. In times when the price appears to be trading within a bullish pattern, the on-chain formation raises some concerns over the upcoming ETH price rally. 

After the latest breakout from the consolidated range around $1800, the ETH price managed to rise above $2000 and even surpassed the $2500 resistance. However, the bears have been restricting the rally below $2600 for over a week, which is flashing massive bullish signals for the crypto. From a wider perspective, the ETH price seems to be trading within a bullish pattern, and hence, a breakout beyond $3200 could appear imminent. 

The daily chart of ETH shows a bull flag forming, and the price is heading towards the edge of the pennant. In a wider perspective, the token seems to be in the middle of a V-shaped recovery, and hence, a rise from the consolidated range could elevate the levels above $3000. Meanwhile, the volume is squeezed, and the RSI faced a pullback from the overbought zone and is stuck around the upper threshold. Moreover, the price is testing one of the sell zones, triggering a 15% pullback in February, which raises some concerns over the upcoming price action. 

A Rise in Open Interest Could Cause Trouble 

The chart patterns of Ethereum suggest the price is heading towards a breakout, while the on-chain data demonstrates disparity. The buy-take ratio has dropped below 1 despite the breakout that occurred around May 10. This suggests the bearish sentiment is still dominant, which may haunt the upcoming price action. On the other hand, the Open interest is rising but this could not be a bullish signal. 

Although the Open Interest (OI) is rising, it is going in line with the price. The OI is forming similar deviations as the price, which suggests the open positions could close if the price undergoes a significant drop. Hence, the volatility is subject to rise, which could keep the market participants vigilant. 

Therefore, the upcoming monthly close can be considered as important for the Ethereum (ETH) price rally, as a rise above the current consolidation could squash the bearish possibility, while a continued consolidation may raise the possibility of a long-short squeeze in the coming days.