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Market Direction

ETH breaks out but faces major hurdles

Updated: Mar 28, 2025
Published: Mar 24, 2025
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Ethereum sees a relief rally but faces resistance, with open interest climbing. Market sentiment stays neutral as traders await ETH's reaction to key levels.

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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 chart showing new all-time highs by number of coins 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 price chart showing break of pennant pattern with $2,160 key resistance level 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).

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