ETH is still stuck around $2K: Shorts are now piling In

Short-term, it's hard to call. But we like ETH at levels sub $2,000 for DCA entries and aggressive entries in the $ 1,800s for the long term.

TLDR

• ETH is stuck between key support at $1,933 and resistance at $2,120
• More shorts jumping in the last 24 hours versus longs
• There's no clear direction currently, so rangebound action persists.
• We are buying dips below $2K for long-term holds but are currently not trading ETH.

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.

ETH 12hr

Technical analysis

• Like BTC, ETH has rejected into the main horizontal resistance at $2,120 along with the underside of the main uptrend line.
• ETH hasn’t been able to hold the local support at $2,060 for now.
• The major support remains at $1,933. We would be DCA buyers at this price level and below this level.
• If ETH can break above $2,120, then the upside target is $2,340, and beyond this, $2,640. We see ETH at some point establishing this as the new range once we get a breakout of $2,120. Hence, we also remain strong DCA buyers of ETH sub $2,000.

Market mechanics

• ETH’s Open Interest has slightly pulled back from its highs of $7.75b to $7.41b. This isn’t something to be concerned about.
• The OI-Weighted Funding Rate is also not much of a concern, being very flat here. It’s come down from 0.0130% yesterday to 0.0095% today, indicating more Shorts have joined the party.
• We can see this from the Long/Short Ratio at 0.9062. This indicates a lot more Shorts have piled in over the past 24 hours compared to Longs. We will need to keep a watch on this in case it escalates.

Cryptonary’s take

The mechanics for ETH show more Shorts have piled in over the last 24 hours. This isn’t concerning yet, but it is something we’ll have to continue watching. If more Shorts pile in, they’ll be vulnerable to a Short squeeze.

The TA setup is relatively boring. Price remains range bound between $1,933 and $2,120. We believe ETH should be trading at a higher range here, say between $2,340 and $2,640. We’re therefore DCA’ing into ETH in the $ 1,900s, with more aggressive buys at $1,933 and our most aggressive buys in the $1,800s if we see that level.

Regarding short-term trades, we remain seated on the side for now. We won’t jump in until the range breaks or the mechanics become significantly overweight in one direction – in which case, we’ll then look to take the opposite side.