ETH drops 16% in liquidation event

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.

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• ETH's Open Interest plummeted over the last 48 hours, showing that this was a large leverage washout event.
• ETH's Open Interest (by number of coins) fell by 16%.
• ETH's Funding Rate was very negative on Monday, but it has now returned to slightly positive. However, funding keeps flip-flopping between positive and negative, showing indecision among traders, who are most likely being chopped up.

ETH's open interest (by number of coins):

Technical analysis

• ETH rejected into the horizontal resistance of $3,480. A failed breakout then sent the price to $3,280, which also couldn't hold.
• The capitulation event sent ETH well below the next horizontal support of $2,420, but the price has recovered and is now trying to stabilise around the Yellow Box - which has now been filled, as we called for.
• $2,600 is the next horizontal support, whilst $2,875 is the next horizontal resistance.
• ETH's RSI is close to being oversold, and it remains well below its moving average.

• Next Support: $2,600
• Next Resistance: $3,050
• Direction: Bearish/Neutral
• Upside Target $3,050
• Downside Target: $2,400

Cryptonary's take

We'd expect the price to take some time to establish a new range here, likely between $2,600 and $3,050. Whilst the price remains in the downtrend, we'd expect it to be range-bound, and therefore, we're not expecting any major breakouts anytime soon. If the price were to revisit the $2,300's, that might be worth a bounce play. But, other than that, we're not too interested in ETH at this moment in terms of trading opportunities.