ETH breaks free; can it touch $2,340?

With open interest climbing and bullish momentum squarely in control, ETH looks poised to leave the crypto winter behind with gusto.

The technical picture is very attractive for a strong near-term upside, with $2,340 the next target in its sights.

While bitcoin has shown some signs of overheating, Ethereum’s more balanced mechanics mean ETH may be ready to outperform sharply.

TLDR

• ETH decisively broke through major resistance at $2,120, opening the path to test $2,340 next.
• The bullish momentum is solid and not yet overheated like BTC.
• A retest of $2,100 region could offer healthy support and provide a buying opportunity.
• A very positive technical setup indicates ETH is likely to strongly outperform in the near term.

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 3D

Technical analysis

• ETH has broken out of the $2,120 horizontal resistance with the upside target of $2,340. If $2,340 can be cleared, $2,640 will be the next target. We think this is very possible before year-end.
• The prior resistance of $2,120 will need to become the new support if there is a retest lower.
• The RSI has moved into overbought territory on all timeframes. 

Market mechanics

• ETH’s Open Interest has risen substantially from $7.0b to $7.8b in just a few days. 
• The OI-Weighted Funding Rate has ramped up similarly to BTC. Funding was at 0.0120% and increased to 0.0340%, although it has pulled back to 0.0250%.
• The Long/Short Ratio is at 1.018. This is relatively healthy, indicating an even balance between Longs and Shorts, at least in the last 24 hours.

Cryptonary’s take

Looking at the mechanics, it’s a healthier setup than BTC as the Funding is very positive, but at 0.025%, this is an okay level. The Open Interest has increased significantly, so this could lead to a flush out, although we would likely need to see Funding go even more positive before we get a flush out.

The TA looks very positive. A move down to the $2,100s would be positive for price action if $2,120 can hold as support, and the price can bounce higher from there. We would be light DCA buyers of ETH in the low $2,100s if we are given this price. 

We see ETH as being very well set up to test higher levels ($2,340 and then $2,640) in the coming month.