Ethereum eyes $2,420 support zone

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 is at all-time highs, and despite Funding decreasing slightly from positive levels (arguably a good sign), the Spot CVD has increased and is close to monthly highs.
• The price increase has been supported by Spot buying, not just leveraged Longs. This is positive for price action.

ETH mechanics:

Technical analysis

• Price has reclaimed the local uptrend line and is now above the local horizontal level of $2,557.
• Price is now also butting in to the main downtrend line and forming a bullish pennant. The breakout target of this would be $2,725.
• The main resistance above price is at $2,875, although there is a local level at $2,725.
• To the downside, we'd expect the range between $2,420 and $2,557 to provide ample support.
• The RSI is still relatively in the middle territory at 59, so it is not yet close to being overbought.

• Next Support: $2,557
• Next Resistance: $2,725
• Direction: Bullish
• Upside Target: $2,875
• Downside Target: $2,557

Cryptonary's take

From both a mechanics and TA perspective, ETH looks great here. If BTC holds up, we would expect ETH to break out of its main downtrend line and potentially swiftly head higher to $2,875.