Market Direction

ETH eyes $3,700 after breakout

Published: Jan 31, 2025

Ethereum is testing key levels at $3,280 and $3,480, struggling to break out. Meanwhile, Bitcoin holds its range, and the market remains uncertain. Will ETH rally or retest $3,050 first? Let’s break down the key price 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 continues to grind higher; there is no change here.
ETH's Funding Rate, like BTC's, fluctuates between 0.00% and 0.01%, indicating that there's an even balance between Longs and Shorts.

ETH's funding rate zoomed in:

3. A funding rate chart for Ethereum, showing ETH price trends along with open interest-weighted funding rate variations on a 5-minute timeframe.

Technical analysis

ETH is interesting here. The price bounced off the main horizontal support of $3,050.
Price is now attempting a break above the horizontal level of $3,280 whilst it's also looking to break out of the main downtrend line.
The key for a major breakout here will be for the price to break the main horizontal resistance at $3,480.
If the price can break out at $3,480 (we're sceptical in the short-term), then $3,700 is the target.
The RSI is also attempting a breakout above the downtrend line and the moving average. We really need to see this move stick to potentially see a more substantial upside.

4. ETHUSD daily candlestick chart featuring trend lines, resistance and support levels, and RSI analysis, indicating a potential move downward.

Next Support: $3,280
Next Resistance: $3,480
Direction: Neutral
Upside Target: $3,700
Downside Target: $3,050

Cryptonary's take

ETH is at a really key level here as it is trying to break out. A breakout of the downtrend line and $3,480 horizontal resistance is a big ask, so we are sceptical. But this is what's needed to get that breakout.

If the price were to break out, it would be a huge sign-off strength, and this may actually lead to other plays/sectors also having more substantial rebounds. Unfortunately, we're not expecting a substantial breakout in the short term, and we're still thinking that ETH can revisit $3,050 before it touches the Yellow Box. But we're expecting $3,050 as a minimum retest again.