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Market Direction

Ethereum continues to underwhelm despite a bullish structure

Updated: Jul 25, 2024
Published: Nov 1, 2023
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Ethereum is delivering a somewhat underwhelming performance despite its immense potential. The technical structure for ETH remains decidedly bullish, but it seems like the crowd is waiting for that breakout moment. The question is this. Can ETH can hit the right note and surge to new heights? Let’s dive in.

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TLDR

  • ETH retains its bullish technical structure despite underwhelming performance.
  • Key resistance levels at $1,853 and $1,933 are crucial for an upward move.
  • The $1,745 level has provided strong support, bolstering the bullish case.
  • A bull flag formation suggests an upside bias contingent on BTC's stability.
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

The $1,23 to $1,853 area remains the key resistance for ETH. If ETH can breakout of that level, it’s possible ETH can then move to $1,933, which is the last resistance before a clean move to $2,120. So far, the $1,745 horizontal level (prior resistance) has acted as good support, which is positive and should help fuel a move higher. The key is convincingly breaking above $1,853”.

The above update from prior days remains true. We’re still between these key ranges. However, ETH is in a bull flag, not super clean, but still relatively clear-cut. A bull flag has a bias to break to the upside, which we think ETH can, assuming BTC doesn’t break down. If ETH can clear that $1,853 level, then that essentially is like a ceiling being lifted off, and ETH can climb from there. 

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RSI and funding rates

The RSI on the daily is no longer in overbought territory, but we have put in a bearish divergence - higher high in price and a lower high on the oscillator. So, we should be somewhat cautious because of this, but when assessed against the rest of the information, we don’t see this being enough to put us off our conviction that ETH can go higher from here. 

Regarding funding rates, ETH still has a very positive funding rate, with open interest also not too high. This is a healthy backdrop, market-mechanics-wise. Therefore, it should aid ETH’s case to go higher. 

Cryptonary's take

As we know, ETH has underperformed, but we feel it can have its move up. This uptrend should happen if it can get above the $1,853 horizontal level and BTC holds up. 

Action

  • We still like ETH here and feel its underperformance makes it more attractive here to move later than other coins - assuming BTC holds up. 
  • We also like ETH here for the long term. Prices under $1,800 still present an attractive entry point if you’re a long-term investor.

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