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Market Direction

ETH may outperform the rest of crypto in the short term

Updated: Aug 23, 2024
Published: Jan 12, 2024
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Finally, ETH records a really nice move higher in price.

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When looking at the mechanics, Open Interest has moved up drastically, however Funding has remained relatively low, suggesting there isn't an over crowding in one direction or another. 

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Technical analysis

  • Finally, ETH has a break above the horizontal resistance of $2,340, and the price moved straight up to the next resistance at $2,640.
  • It's now important for price to establish itself in this higher range between $2,340 and $2,640.
  • The local resistance to the upside is $2,740. Ideally, we'd like to see price hold these highs.
  • The RSI has moved into overbought territory on all major timeframes but only on the 3D and Weekly, so this shouldn't concern us for now.
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Cryptonary's take 

With an ETF for ETH likely to be pushed in the summer, it's possible that yesterday was the first day we've seen a rotation from BTC into ETH as the narrative swaps over. 

Even though our short-term expectation is for a pullback in the broad crypto market, we feel ETH may outperform during that pullback. 

We were strongly convinced that the low $2,100s was a good long-term buying zone for ETH, with many opportunities presented to buy at this price over the past few months.

Price is now up 20% from there. For now, we continue to hold Spot ETH happily. If ETH dips to the low $2,400s, we'd consider adding further buys there. 

For now, though, we are sitting patiently and holding because we think ETH can be a good performer over the coming months, even if the wider market underperforms.



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