The Open Interest is down from $7.92b to $6.95b, a nice 10% decline, flushing out the excess.
Funding Rates have also kicked higher and are at relatively high levels now of 0.02%, indicating many Longs are open here.
Again, this is a dangerous position to be in ahead of today's FED Press Conference, as we expect volatility.
Disclaimer: Not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.
Technical analysis
- Like BTC, ETH is in a pennant pattern, which is a continuation pattern, suggesting the next major move will be a break to the downside.
- ETH is also at its main uptrend line, which it hasn’t yet lost. This is a crucial area for ETH.
- Local support is below price, but this would be below the main uptrend line. The local support is at $2,130. Beneath this, $2,060 and then $1,933.
- We like the RSI's position. It is currently resetting on all major timeframes and not being overbought on any now.
Cryptonary's take
BTC's take will pass onto ETH.We may grind up today into the SEP; we will get a further move higher then.
Then, 30 minutes later, Powell speaks ultra-hawkishly to walk this market back.
Price-wise, ETH is a key area here.
A bearish pennant while battling at the main uptrend. We may see a more significant downside here in the short term, particularly if Powell is hawkish this evening.
If ETH saw an even more meaningful pullback, we would continue to be DCA buyers of ETH sub $2,060, with our DCA orders becoming even more aggressive in the low $1,900s.
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