ETH holds key support at $3,700

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.

---

• Like BTC, the rest of the market also moved lower; however, generally speaking, the rest of the market saw less of a meaningful flush out.
• ETH's Open Interest on Binance moved down from 1.67m ETH to 1.51m ETH, so an approximate 10% flush out in Open Interest for ETH.
• The Funding Rate had moved up substantially, and it came down from 0.065% to 0.024%.
• So, some Longs were flushed out. However, there still remains a relatively high level of Open Interest.

ETH funding rate:

Technical analysis

• The TA hasn't changed much from our last update, so we'll keep this section lighter.
• Price has remained in an uptrend, and for now, the price has initially rejected the major horizontal resistance and psychological level of $4,000.
• To the downside, the $3,480 to $3,700 zone should act as major support.
• The RSI is very close to overbought territory. It's close that there is further upside, but we wouldn't be surprised to see the price linger under $4,000 for a week or so, and that might help reset the RSI slightly.

• Next Support: $3,480 - $3,700
• Next Resistance: $4,000
• Direction: Neutral/Bullish
• Upside Target: $4,000 (then $4,500)
• Downside Target: $3,480

Cryptonary's take

Whilst it's possible that ETH does just break beyond $4,000, we do still expect that $4k is a resistance, at least for a few more days, potentially up to the next week. However, beyond that, we do expect a stronger break out that eventually sees ETH move to $4,500 within the coming weeks.

For now, we continue to hold Spot bags. A retest of $3,500, and we'd consider adding to these Spot bags for a short-term swing trade.