ETH breaks out but faces major hurdles

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ETH

Market metrics:

• Interestingly, ETH's Open Interest has hit new highs (by number of coins). This indicates that there's still demand to take the 'cash and carry' trade - Buy Spot ETH, Short ETH Futures.
• ETH's Funding Rate, like Bitcoin's, has mostly just fluctuated around the 0.00% mark, indicating that traders are generally flip-flopping on their positioning, which indicates that overall conviction isn't high.

ETH's Open Interest: Ethereum Open Interest reaching new highs, indicating continued demand for cash and carry trades

Technical analysis

• ETH has broken out of its pennant pattern. We thought we might get a breakdown, one more touch of $1,745 before a move higher. But that hasn't happened, and ETH has just moved higher. Positive.
• ETH is now pushing higher but it still remains underneath the local horizontal resistance of $2,160. This'll be a key level for ETH, and it's response at that level will be important information for us.
• Beyond $2,160, the main horizontal resistance is at $2,420.
• ETH has really nicely broken out of it's main RSI downtrend line, which is good to see, however, hidden bearish divergences have been put in, meaning a rally can be weak.
• To the downside, the main horizontal support remains at $1,745.

Ethereum technical analysis highlighting the pennant pattern breakout and key resistance at $2,160 ETH 1D Timeframe - Key Levels:

• Next Support: $1,860
• Next Resistance: $2,160
• Direction: Neutral
• Upside Target: $2,160
• Downside Target: $1,745

Cryptonary's take ETH is rallying off of the local bottom after a really poor 3 months, which was essentially straight down and saw ETH half in that time. ETH is now putting in a small relief rally, but unfortunately, for now, and in the short term, that's all we expect it to be. $2,160 is the local resistance, and we'd expect the price not to break above it, but if it were to, then we'd be confident that $2,420 would be too strong of a resistance for ETH. Ultimately, we're not moving off the back of this, and we're more keenly watching $2,160 as a key level to test, and we'll be taking a lot from ETH's behaviour/response at that level (assuming the price gets there to retest).