ETH struggles to hold reclaimed support zone

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 Funding Rate remains positive, but at a healthy level,
• ETH's Open Interest has increased dramatically on this price rebound. This is likely large players scaling into Shorts.

ETH's open interest (by USD value):

Technical analysis

• The positive development was ETH reclaiming back above $2,420, and the price began to use that level as horizontal support.
• However, price has since retested below that level, and it's now battling to maintain above it.
• To the downside, the two key horizontal levels are $2,420 (current level) and then $2,160.
• To the upside, the key horizontal level is $2,700.
• ETH's RSI moving average has moved well into overbought territory. It's possible we see a small move up of the RSI, and a rejection of its moving average. This likely results in the price moving into $2,160 over the coming weeks.

• Next Support: $2,420
• Next Resistance: $2,700
• Direction: Bearish
• Upside Target: $2,700
• Downside Target: $2,160

Cryptonary's take

This move higher in ETH was mostly due to Shorts being squeezed, hence it was such a violent move. However, we do see the most likely path for ETH over the coming weeks being a pullback to $2,160. At that level, we may begin DCA'ing into ETH, however, we will reassess at that price level (assuming we get it), and it's very possible that our DCA levels are lower than $2,160. For now, we're remaining patient and we're not looking to accumulate ETH, and probably not anytime soon.