ETH struggles near $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 (by number of coins) continues to grind to a new all-time high. However, this may be due to large funds/institutions taking advantage of the 'cash-and-carry' trade (buy the ETF, short the futures, profit off the Funding Rate).
• ETH's Funding Rate remains at the healthy level of 0.01%. This is positive to see.

ETH's open interest:

Technical analysis

• ETH did break below its uptrend line, but the price bounced perfectly from the $3,480 horizontal support.
• Price is now battling to recover the uptrend line, and it is putting up a good fight so far.
• Price is now butting into the main horizontal resistance between $3,950 and $4,000.
• If ETH were to break above $4,000 convincingly, we'd expect $4,500 to be swiftly achieved.
• There is now local support for ETH between $3,700 and $3,800.
• The RSI has meaningfully reset and not near overbought territory. This may allow the price of the room to run higher.

• Next Support: $3,700
• Next Resistance: $4,500
• Direction: Bullish
• Upside Target: $4,500
• Downside Target: $3,700

Cryptonary's take

ETH is in a really interesting spot here. It's possible that the converging resistances (beneath the uptrend and the horizontal resistance) can keep the price below $4,000 for more days. However, we expect ETH to break out more imminently. And when it does, we expect $4,500 to be achieved quickly. Any pullbacks to $3,700 - $3,800 should be bought for a move up to $4,500.