ETH RSI signals $4,000 resistance

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

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• ETH's Open Interest is on an absolute rip, on both the USD terms and the by the number of ETH. This is likely due to increased 'cash-and-carry' trades and more large players entering the ALT market following Trump's win.
• ETH's Funding Rate has also increased to 0.03%. Again, this is relatively elevated; however, we're not greatly concerned about it in the immediate term.

ETH's open interest (by the number of ETH):

Technical analysis

• It was just a really clean move up to nearly $4,000, which we have called for perfectly over the last few weeks.
• Price has managed to find support and held key horizontal levels before moving higher. First, it was $3,000, then $3,280, then $3,480, and now it's a straight move to $4k.
• To the downside, we'd expect $3,550 to $3,700 to be a strong support zone for ETH.
• For now, ETH is moving in a nice uptrend, and it's possible that, at an approach of $4,000, there might be significant psychological resistance for ETH.
• The RSI is also grinding higher into overbought territory. If ETH approaches $4,000 and struggles to have a smooth break out above that level, we might see a short-term overbought pullback.

• Next Support: $3,700
• Next Resistance: $4,000
• Direction: Bullish
• Upside Target: $4,000
• Downside Target: $3,480

Cryptonary's take

ETH is one we've got really spot on over the last few weeks, having perfectly called for the move up from the lows around $2,300 to $2,500. ETH is now approaching the short-term target of $4,000. While it's possible we will see a major break out of that level, it's also possible that we will see ETH stall in the short term at the $4,000 mark. If that then generates a small pullback, a retest of $3,700 might be a good place for a new entry.