Can ETH join BTC's breakout party?

If BTC consolidates in the low/mid $38Ks, we'd expect ETH to begin moving and attempt its own breakout.

TLDR

• ETH faces key resistance at $2,120; it must break above to see further upside.
• Bullish structure intact unless price drops below $1,933.
• Mechanics look healthy; there is not much leverage or imbalance in longs/shorts.
• Attractive long-term buy at current prices around $2,000.

Disclaimer: Not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results. “One Glance” by Cryptonary sometimes uses the RR trading tool to help you quickly understand our analysis. They are not signals, and they are not financial advice.

ETH 1D

Technical analysis

• ETH has moved higher, but it still remains underneath its key horizontal resistance of $2,120.
• If $2,120 can be overcome, we expect $2,340 to be relatively easily achieved.
• To the downside, ETH will need to hold $1,933 to maintain a bullish structure. But, regardless of structure, we would be DCA buyers of ETH at $1,933.
• The RSI remains positive on all timeframes except the 3D, potentially putting in a second bearish divergence in overbought territory - something we must be wary of. 

Market mechanics

• ETH’s Open Interest has pulled back slightly and is at $7.33b. This is not too high at all. 
• The OI-Weighted Funding Rate has ramped up in a similar style to BTC, but it’s only at 0.013%, indicating there is a bias to be Long, but Longs are not so overweight that there’s a clear imbalance between Longs and Shorts here.  
• The Long/Short Ratio is at 1.011. This is relatively healthy and indicates an even balance between Longs and Shorts.

Cryptonary’s take

From a mechanics perspective, we think ETH looks positive here. There isn’t loads of leverage, and neither side (Longs or Shorts) are too overweight and vulnerable to a squeeze.

From a TA perspective, ETH is in a middle ground. It ultimately needs to clear above $2,120 to see sustained further upside. However, we think that in the long term, ETH at the current price is very attractive. We would, therefore, be DCA buyers at the current price (particularly if your current exposure is light). If we are given close to $1,933 or below, we would be aggressive buyers of ETH at those price points.