Market Direction

ETH may need help from BTC to break out

Updated: Aug 23, 2024

Published: Jan 4, 2024

Again, the mechanics reset nicely on ETH, as with the rest of the market, so we're clean from this perspective now and good to go higher from this viewpoint.

There’s no longer excess leverage and overcrowded Longs in the market.

In crypto, going against the consensus is usually a decent idea, particularly in times of fear or greed.

Technical analysis

Initially, ETH looked good, getting above $2,340 and using it briefly as support. Just unfortunate that it broke below.
$2,130 has held as the major support.
ETH is now entering a key range that could provide resistance between $2,260 and $2,320. Beyond that, the major resistance is $2,340. All of these need to be broken to the upside.
The current resistance zone may provide too much local resistance for price. We'll likely need a positive BTC ETF decision to get the ETH breakout.
The RSI is clean; no major timeframe is overbought, so this is a positive for ETH in terms of further upside.

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Cryptonary's take

ETH continues to struggle and underperform.

Currently, there is this local resistance box between $2,260 and $2,320.

We feel that ETH may struggle to clear this zone imminently, and maybe only a positive ETF decision will allow ETH to break out.

Currently, the volume on the buy side is really low also. That will need to increase much more if ETH wants to see a breakout.

For now, we are holding tight to our ETH, as we think it can perform well from Q2 onwards and will look to accumulate lower down - sub $2,130 if we're given it.