ETH has broken to the downside. What's next?

The Funding Rate has remained at 0.01%, indicating that there isn't an overweighting in positioning between Longs and Shorts, so the problem wasn't here. 

The issue (or the aspect) we didn't like was in the Open Interest, which still remained high.

However, in the past three days, OI has gone from $7.95b down to $7.34b, having put a high in a week ago at $8.44b.

 For ETH to have a healthy leverage market, it was important to see this OI come down, which it has now done as price has moved lower. 

Disclaimer: Not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results. “One Glance” by Cryptonary sometimes uses the RR trading tool to help you quickly understand our analysis. They are not signals, and they are not financial advice.

Technical analysis

• Price initially rejected at the horizontal resistance of $2,700.
• Price then formed a descending wedge, which usually has a bias to break to the upside. However, this one didn't, seeing a severe breakdown.
• Unfortunately, the $2,340 horizontal level that was prior resistance, we had hoped that it would hold as new support. However, price has fallen straight through it, now fitting a local support at $2,200.
• There is another horizontal support at $2,133.
• The RSI on the 4hr is heavily oversold, while the 12hr has also entered oversold territory.
• The yellow box between $1,979 and $2,053 would be the place to add Long orders again.

Cryptonary's take

ETH has lost some key levels on the way down, the $2,340 level being the key one. 

We may see a short-term relief bounce here because ETH is quite oversold.

However, now that key structures are broken, ETH's price will likely head to the yellow box in the coming weeks. 

That's where we'd be interested in adding long-term buy orders again.