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Market Direction

ETH continues to underperforms BTC, but it has a bright future

Updated: Jul 25, 2024
Published: Oct 24, 2023
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ETH is also overbought here, even though it has largely underperformed BTC.

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TLDR

  • ETH lagging BTC but cleared above key $1,690 and $1,786 MAs.
  • Facing resistance at the $1,850 area, the bull run target remains $7k-$10k.
  • Overbought like BTC across timeframes, so a pullback is very possible.
  • We need to see $1,850 being flipped into support before the next major leg-up.
Disclaimer: Not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results. “One Glance” by Cryptonary sometimes uses the RR trading tool to help you quickly understand our analysis. They are not signals, and they are not financial advice.

Technical analysis

ETH has moved up really nicely, as has every major coin pretty much. But, ETH has underperformed in relation to BTC. 

ETH price has now moved into the horizontal resistance area of $1,823 to $1,853 - a resistance zone. Above this, the next major resistance is at $1,933. 

What’s also positive is that ETH has cleared above its main weekly and daily MAs at $1,690 and $1,786. It would be really positive if ETH could remain above one of these MAs and form new support above one of these MAs. Of course, $1,786 would be better than $1,690. Note: MA is not shown on the chart to keep things neat.

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RSI and funding rates

The RSI is now well into overbought levels, even though it was nowhere near such levels yesterday. Again, this is the most overbought the market has been since January 2023 – it is overbought on the daily, 12-hour and 4-hour timeframes. Currently, there are no clear divergences.  

ETH is very positive regarding the funding rates - like the rest of the market. Most of the short open Interest was wiped out yesterday in the large move-up. 

Conclusion on trading ETH

Like the rest of the market, ETH is overbought here, and fresh longs shouldn’t be encouraged. ETH is undervalued today compared to where it’ll likely be in the bull run. However, if BTC can see a slight pullback, we should expect ETH to do the same.  

Action

  • ETH has moved drastically higher but is now hitting a main resistance area between $1,823 and $1,853. 
  • Fresh longs shouldn't be encouraged because the market is so overbought here. 
  • ETH is still undervalued relative to where it could be in the bull run. A bull run target for ETH would be $7,000 to $10,000.

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