Is ETH at the risk of more downside?

The mechanics have reset despite never really getting out of hand in the past few weeks.

However, Open Interest is lower, while Funding is close to 0.01% but is beginning to move higher and is now slightly north of 0.015%. 

Technical analysis

• The key takeaway from instantly looking at the chart is that the main uptrend line has been lost.
• Price is currently sitting on top of a local support of $2,130, which is a horizontal support we have outlined. It was previously a key horizontal resistance.
• There are several local horizontal supports beneath $2,130, at $2,060 and then a major level at $1,933.
• The RSI has reset on all major timeframes now. This is healthy for ETH in the mid and long term.

Cryptonary's take

Beneath the uptrend line, it's difficult for bullish momentum to be maintained. 

We initially want to see a bounce off of the horizontal area of $2,133 and then a retest of the underside of the uptrend line.

If ETH finds resistance at the underside of the uptrend line, then we will likely see further downside for ETH, where $2,130 will need to hold again. 

ETH, we think, is less liable to a more significant downside. We believe BTC can pull back to $38k, and then ETH will likely pull back with it. 

If ETH does fall sub $2,130, we would be lightly DCA'ing into ETH again, with our DCA orders becoming increasingly aggressive (in terms of our USD size) between $1,933 and $2,060.