ETH is trading in a tight range: Where will price go?

We're DCA buyers of ETH sub $1,933 and aggressive DCA buyers in the $1,800s.

We see $ETH trading between $2,340 and $2,640 in the coming months.

TLDR

• ETH rejected from $2,120 resistance, finding support at the $2K level.
• RSI resets across timeframes, but 3D shows bearish divergence.
• There’s no trade edge currently, as funding rates show even leverage.
• Watch for breakouts from the range. We will make aggressive buys below $1,850.

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

• ETH has found some local support at the psychological level of $2,000 after being rejected from the main horizontal resistance at $2,120.
• $1,933 remains the main support. We are DCA buyers of ETH on retests of this level.
• The RSI has reset on all timeframes, although the 3D is coming off the back of a bearish divergence. 
• $1,850 is the next main support below $1,900. If this level is reached, we would be aggressive with our DCA buys at this level.

Market mechanics

• ETH’s Open Interest remains higher than prior months’ levels at $7.50b, but this wouldn’t be considered an overheated level here.  
• The OI-Weighted Funding Rate is flat at 0.01%. Therefore, there is an even balance between Longs and Shorts, meaning we don’t have too much of an edge here as there isn’t an overweight side for us to trade against. 
• The biggest liquidation levels are at $1,880 and $1,770, with $1,770 being the biggest. If price does move down to these levels, we would be aggressive DCA buyers. 

Cryptonary’s take

The TA suggests that ETH, like BTC, is struggling into the higher levels of $2,120 and even the local level of $2,060 couldn’t hold. However, the mechanics are healthy but with bigger liquidation levels lower at $1,860 and then $1,760. 

For now, we’re not looking for any short-term trading opportunities until we see a clearer break of the range. But, if price falls back to $1,933, we will continue with DCA buys, with even more aggressive buys coming beneath $1,860. We would have a 12-18 month time horizon for these Spot buys. 

Overall, we think ETH is still at a really attractive price. If we can buy lower, then that would be fantastic!  We see ETH trading between the $2,340 and $2,640 range in the coming months.