$2,420 ETH support in focus

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

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ETH:

• ETH's Open Interest has moved up from the lows very slightly, but it still remains well below the highs we saw before the flush out.
• ETH's Funding Rate has fluctuated between positive and negative, indicating that traders have flip-flopped between Longing and Shorting.

ETH's funding rate:

Technical analysis

• ETH has bounced from the $2,500 level and it's moved up to the local horizontal resistance of $2,875, where it has (for now) rejected, as we expected it to. $2,875 to $3,050 is the resistance zone. For now, we expect this resistance zone to hold.
• There is local support for ETH at $2,655, with the major support at $2,420.
• We're now also seeing the formation of a local uptrend line (yellow line). A break below this line could propel a larger move to the downside.
• The RSI has broken out of its main downtrend, it's moving higher and is using its moving average as support. This is one of the few elements of the TA.

• Next Support: $2,650 (then $2,420)
• Next Resistance: $2,875
• Direction: Bearish
• Upside Target: $2,875
• Downside Target: $2,420

Cryptonary's take

It's possible we see a positive outcome over the coming weeks, although we still favour the negative outcome (downside). The positive outcome would be price grinding into the main downtrend line and the horizontal resistance of $2,875, and then breaking out to the upside. The negative outcome is just a rejection into this converging resistance zone, and then the price makes new lows, likely at the $2,420 support.