Ethereum faces pressure near $2,420 support

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 Funding Rate is positive but more muted than BTC and SOL's.
• ETH's Open Interest remains at very elevated levels, meaning that there is a large leverage buildup, although from Funding, we can tell that the positioning is relatively even.

ETH's open interest (by USD value):

Technical analysis

• ETH's price has fluctuated between the local horizontal resistance at $2,720 and the major horizontal support at $2,420.
• If price loses the $2,420 level, then the next major support is at $2,160.
• To the upside, if $2,720 can be overcome, then $3,050 is the next major horizontal resistance.
• The RSI was in overbought territory, although it has now pulled back slightly. However, the moving average is in overbought territory, and it is now beginning to roll over.

Cryptonary's take

ETH has had a big and quick move up; however, momentum now looks as if it's stalling with the RSI rolling over and price being unable to break out above $2,720. If the price loses

$2,420, then we'd expect a revisit of $2,160. If price revisits $2,160, we'll assess at the time if we add to ETH at those levels. It'll likely depend on how deep of a pullback BTC goes through in this same scenario. For now, though, we're remaining patient, and we're not looking to accumulate any ETH here as we're expecting the price to pull here over the coming 1-2 weeks.

• Next Support: $2,520
• Next Resistance: $2,720
• Direction: Neutral/Bearish
• Upside Target: $2,720
• Downside Target: $2160