ETH targets $4,000 this week

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 remains at record highs, while the Funding Rate is also elevated, but it is not excessively high.
• The reason why ETH's Open Interest is likely so high is likely due to large players taking advantage of the 'cash-and-carry' trade. Buy the ETF and Short ETH Spot, and profit from being paid the Funding Rate.

ETH's open interest:

Technical analysis

• Really nice move that, overall, we've called relatively perfectly.
• ETH managed to consolidate between $3,280 and $3,480 before now breaking above $3,480 and pushing into $3,600. $4,000 likely soon.
• In terms of support, we expect $3,480 to be local support, with $3,280 as a stronger support.
• On the upside, we think the main resistance is at $4,000. It's a psychological level as well as a prior resistance level.
• One thing to note here is that ETH has put in a bearish divergence (a higher high in price and a lower high on the oscillator). However, it's not in overbought territory, so that's not as bad.

• Next Support: $3,480
• Next Resistance: $4,000
• Direction: Bullish
• Upside Target: $4,000
• Downside Target: $3,280

Cryptonary's take

ETH's narrative has improved substantially, and price action has been positive for once.

Therefore, we do expect ETH to just grind up to $4,000 in the coming week.

If we get this, we'd expect $3,480 to then become a more major support. Overall, we're positive on ETH here, as we pretty much have been since its lows in the low $ 2,000s.