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Market Direction

Ethereum forms bullish pennant near key level

Published: Apr 14, 2025
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ETH forms a tightening pennant, with bullish RSI and improving funding rates. But with resistance zones overhead, traders are watching closely for either breakout or rejection.

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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.


  • ETH's Open Interest still remains at very elevated levels as traders take advantage of the basis trade. From a zoomed-out perspective, ETH's OI is becoming less and less of a relevant tool when conducting our analysis.
  • ETH's Funding Rate has fluctuated between negative and positive, but it now sits at more meaningfully positive levels. However, overall, this reflects indecision amongst traders.
ETH's funding rate:

A screenshot of a graph AI-generated content may be incorrect.

Technical analysis

  • ETH has found support between $1,400 and the $1,530 horizontal level, with price now forming a pennant pattern that looks to potentially be setting up to breakout to the upside.
  • ETH is also squeezing into its main downtrend line. A breakout could set up a swift move to at least the next horizontal level at $1,745.
  • To the upside, the main horizontal resistances are at $1,745 and $2,160. $2,000 is also a psychological level.
  • To the downside, $1,400 to $1,530 remains the support zone.
  • The RSI is above its moving average, and it has broken out of its downtrend line, whilst it's still in low middle territory, suggesting that there's further upside to be had.
  • In terms of a bullish reversal signal, we'd be looking for a breakout of the local downtrend line and a reclaim of $1,745. We think this is possible in the short term.
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  • Next Support: $1,530
  • Next Resistance: $1,745 (then $2,000)
  • Direction: Bullish
  • Upside Target: $2,000 (maybe $2,160)
  • Downside Target: $1,530

Cryptonary's take

In the short-term, we expect ETH to see a breakout to the upside, which could see $1,745 retested as the minimum level, with $2,000 potentially being the first major stopping point. However, we do expect this to be a short-term relief rally, and for the $2,000 to $2,160 zone to be the stopping point (local top). We would then lean more bearish again, and expect the lows to be retested. That's where we'd look to fill longer-term Spot buys, between $1,230 and $1,530.

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