Market Direction

ETH breaks below $3,280 – What’s next?

Published: Jan 28, 2025

Ethereum remains stuck in a tight range, failing to break above $3,280 resistance while holding $3,050 support. With high open interest and a balanced funding rate, will ETH finally see a breakout? Let’s analyze the market action.

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.

ETH's Open Interest is still sky-high due to the cash-and-carry trade. It's becoming somewhat pointless to look at ETH's OI because of this.
ETH's Funding Rate is at 0.008%, suggesting there's an even mix of Longs and Shorts.

ETH's open interest (by number of coins): 3. Ethereum futures open interest chart displaying rising interest alongside ETH price fluctuations, indicating market participation trends.

3. Ethereum futures open interest chart displaying rising interest alongside ETH price fluctuations, indicating market participation trends.

Technical analysis

ETH has broken down from its main horizontal resistance of $3,480 and is also rejected at the main downtrend line.
Price has then broken below the next horizontal level of $3,280, but we are seeing the $3,050 hold as support for now.
The RSI is in middle territory, but it's in a downtrend and also below its moving average.
The key breakout will be a move above $3,480 and a break above the downtrend line.

4. Ethereum price chart with supportresistance levels, trendlines, and RSI analysis, showing possible downside support zone.

Next Support: $3,050
Next Resistance: $3,280 (then $3,480)
Direction: Neutral/Bearish
Upside Target: $3,280
Downside Target: $2,900

Cryptonary's take

ETH has been pretty boring here, and there isn't a mega-development beyond our last update. However, the new information we have is that ETH hasn't broken out of its downtrend line, and it's now also below the horizontal level of $3,280 - last time, it was butting up to $3,480 (the key breakout level).

It's possible ETH can move back up to $3,400 - $3,500; however, we wouldn't be surprised if the Yellow box is eventually filled in the coming weeks. Again, this is another that we'll wait on for it to show us direction.