ETH faces resistance and support in bullish setup

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 has increased substantially over the past week, suggesting traders are betting on ETH here.
• Funding is more meaningfully positive, suggesting traders are Long ETH. For now, the Funding Rate is contained, which is positive.

ETH open interest:

Technical analysis

• A really interesting move as ETH looked as if it was breaking out of it's longterm downtrend line, and the local horizontal level of $2,700.
• Price has initially rejected, but it has found some support on top of the downtrend line and in the low $2,600's.
• ETH is also still in its local uptrend, having reclaimed the trend a week ago.
• The RSI was approaching the overbought level, but it has now meaningfully reset back to middle territory and is resting on top of its Moving Average.
• On the upside, the local resistance is at $2,700, and the main horizontal resistance is at $2,875.
• On the downside, the main support is at $2,550.

• Next Support: $2,550
• Next Resistance: $2,700
• Direction: Neutral/Bullish
• Upside Target: $2,875
• Downside Target: $2,550

Cryptonary's take

Even though ETH has pulled back a touch here, the outlook remains positive. ETH has broken out of a major downtrend line and is now retesting it as new support. Alongside this, the mechanic's setup is clean.

Even though we're expecting more subdued price action until the election, ETH looks like one of the better plays for a potential meaningful move to the upside.