Market Direction

ETH reclaims $3,500 resistance level

Published: Dec 31, 2024

Ethereum ($ETH) holds $3,280 support while aiming for $3,700. A 10% OI pullback has reset leverage, creating an opportunity for fresh momentum in the coming days.

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ETH's Open Interest is also down approximately 10% from its highs, although it has started moving higher again in the past few days. Perhaps traders are looking to get exposure to ETH going into the New Year.
The Funding Rate for ETH is at 0.01%, indicating a healthy dynamic between Longs and Shorts. Funding isn't skewed in either direction for now.

ETH's open interest:

3. Ethereum futures open interest and price trend, highlighting a recent recovery after a 10 pullback in open interest.

Technical analysis

Overall, it is a really interesting chart with prices respecting key levels.
The price was rejected on the underside of the uptrend line, and the horizontal resistance was at $3,967.
Price has since pulled back to the low $ 3,00,0, and it has been mostly range-bound between the horizontal support of $3,280 and the horizontal resistance of $3,480.
A break out of $3,500 likely sends the price swiftly back to $3,700.
The RSI is in the middle territory at 47, but it is breaking above its moving average. This could see price follow through a push up to $3,700 in the immediate term.

4. Ethereum daily chart with key levels at 3,280 and 3,480, RSI nearing bullish breakout zone.

Next Support: $3,280
Next Resistance: $3,480
Direction: Neutral (Bullish)
Upside Target: $3,700
Downside Target: $3,280

Cryptonary's take

ETH looks good here for a short-term stab higher, potentially testing into $3,700. For this, we're looking for a breakout of $3,480 to $3,500, which we think we'll get/see in the coming days.