ETH looks primed for more downside in the short term

It is below its main horizontal resistance of $2,340 but still inside its uptrend, hence the squeezing into the pinpoint where the uptrend line meets the horizontal resistance.

Open Interest has come down, but Funding has ramped higher to 0.02%, indicating a bias to be Long here.

Longs are not materially overweight here, but we'd be cautious of adding fresh Longs.

Technical analysis

• The pennant broke to the upside, similar to BTC, although ETH could not overcome its horizontal resistance of $2,340.
• The uptrend line is close and could provide some support for price in the short term, although we expect this to break and price to go lower in the coming weeks.
• The most major horizontal support currently beneath price is at $2,130. Beneath this, there's local support at $2,060 and then again at $1,933.
• On the RSI, all major timeframes are out of overbought territory now, even the 3D. In the coming weeks, We may see more of a reset on the 3D and the Weekly timeframe.

Cryptonary's take

Again, even though we're generally bullish on risk assets, crypto has performed so well in the past few months.

Even with the BTC ETF narrative still occurring, we may see a slight pullback here.

We would look to DCA into $2,130, then be more aggressive with our DCA buys into the $1,900s.

We still see it as quite possible that ETH will revisit the $ 1,900 in the coming month or two, particularly if, in the short term, it cannot break above $2,340 and establish a new range between $2,340 and $2,640.

In the long term, we're still majorly bullish on ETH.