Ethereum caught in tight range with risks

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 phenomenally high levels whilst Funding Rates remain flat (0.00%).
• This suggests that there is a relatively even balance between Longs and Shorts.

ETH's Open Interest (by USD value):

Technical analysis

• ETH has initially rejected into the local resistance at $2,720, although price has found support at the main horizontal support of $2,420.
• ETH remains range bound between $2,420 and $2,720.
• If price breaks below $2,420, the next major horizontal support sits at $2,160.
• If price can move back towards the highs and breakout of $2,720, the next upside resistance level is $3,050.
• As price has consolidated between $2,420 and $2,720, this has given time for the RSI to reset and pullback to middle territory, being neither overbought nor oversold. This is healthy to see.

• Next Support: $2,420
• Next Resistance: $2,720
• Direction: Neutral/Bullish
• Upside Target: $2,720
• Downside Target: $2,160

Cryptonary's take

ETH's chart looks drastically better than the other Majors, as ETH has managed to hold its structure with the $2,420 horizontal support remaining intact. It's important that the $2,420 level continues to hold, and if the rest of the market can hold up at current levels, even for just a few days to a week, then ETH can potentially run back to $2,720 in this time. In terms of breaking out beyond that, we'd likely have to see the general market hold current levels.

For now, we're not looking to trade ETH, although we may look to pick up longer-term Spot bags should ETH break down and retest the main horizontal support at $2,160.

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