Ethereum moves toward $4,000 resistance 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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• 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):

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.

• 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.