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Market Direction

Ethereum moves toward $4,000 resistance zone

Published: Jan 6, 2025
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Ethereum ($ETH) surges above $3,480 resistance, targeting $3,970 and $4,000 as leverage resets. RSI confirms bullish momentum with room for further upside.

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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.


  • It's really interesting to see that ETH's OI (by number of coins) is back to its highs. This shows that a lot of leverage has been put into ETH recently.
  • ETH's Funding Rate is flat at 0.01%, meaning that the increased Open Interest is a relatively even mix of Longs and Shorts.
  • This leverage setup is likely TradFi players taking advantage of the basis trade - Long the ETH ETF, Short the Futures, and take the Funding Rate as the arbitrage risk-free.
ETH open interest (by number of coins): 3. ETH Futures Open Interest chart showing Ethereum price and open interest fluctuations from May to January.

Technical analysis

  • Exactly what we were expecting and looking for: a clean break above the range resistance at $3,480.
  • $3,700 is a local resistance, but it might just be a short-term stopping point before ETH ends up heading higher to $4,000 again.
  • If there is a more meaningful pullback (we're not expecting one), then $3,480 is likely to be old resistance now flipped into new support.
  • The RSI has broken above its moving average, and at 58, it's still a long way from even being close to overbought. More upside likely.
4. ETHUSDT daily chart illustrating key support levels, resistance zones, and RSI indicating bullish movement potential.
  • Next Support: $3,480
  • Next Resistance: $3,970
  • Direction: Bullish
  • Upside Target: $3,970
  • Downside Target: $3,480

Cryptonary's take

Again, it was a really nice and clean move higher than we perfectly called in our last Market Direction. ETH is now in this higher range between $3,480 and $3,700. There's likely more upside to be had even if the price sits still for a few days first, but we are expecting a retest of $3,970 in the coming 7-10 days. All conditions look good here for it; let's see if we get it.

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