Market Direction

Ethereum aims for $3,280 resistance

Published: Nov 7, 2024

As $ETH gains momentum and open interest peaks, the market braces for a potential breakout. Let’s look into key levels for ETH.

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.

The ETH Open Interest is in an aggressive uptrend and hit new all-time highs yesterday. This indicates a lot of leverage has gone in to ETH.
The Funding Rate is similar to BTC. Positive but contained on larger exchanges, but the
Funding Rate is rising on the smaller, less liquid exchanges, indicating traders are paying a higher and higher premium to be Long here.

ETH open interest:

3. Graph illustrating Ethereum (ETH) price movement alongside rising open interest, suggesting increased leveraged trading in the past year.

Technical analysis

So far, a really lovely move, and maybe the first time we're seeing some life from ETH following a Trump victory that potentially improves the regulatory environment, benefitting ETH.
ETH broke back above the main downtrend line and shot straight up to the main horizontal resistance of $2,875 that we've had in place for a number of months now.
Price has so far been rejected from $2,875; although the price now being in this higher range, it's likely we will see a breakout of $2,875 in the coming weeks.
Local support for ETH should be around the $2,700 mark. Really, in this market, ETH should be able to hold the $2,700 local support.
Beyond $2,875, ETH's next major horizontal resistance is $3,280.
ETH's RSI is approaching overbought territory, but isn't yet close. If price consolidates for a few days, this'll reset the RSI more and likely give more room for ETH to then break above $2,875 more convincingly. Likely more upside to go here.

4. Ethereum (ETH) candlestick chart indicating price trends, key support-resistance levels, and RSI, reflecting possible overbought conditions.

Next Support: $2,700
Next Resistance: $2,875
Direction: Neutral/Bullish
Upside Target: $2,875 (to $3,280 upon breakout)
Downside Target: $2,700

Cryptonary's take

A much more positive looking chart which is to be expected considering ETH and just the blockchain space is now likely to be moving in to a new regulatory regime.

We're expecting the price to be range-bound between $2,700 to $2,875 for a few more days and then to breakout above $2,875 potentially by the end of the weekend.