Ethereum prepares for breakout as RSI resets

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 has increased to new highs whilst the Funding Rate is meaningfully positive. This suggests that most of the build-up in new OI is Longs.

ETH's open interest (by USD value):

Technical analysis

• Following its breakout, ETH has remained range-bound between $2,420 (the horizontal support) and $2,720 (the local resistance).
• ETH's RSI has reset during this period of consolidation above a key horizontal support ($2,420), and it now looks ready to breach back above $2,720 and target $3,050.
• If ETH can break out of $2,720, then $3,050 is the next horizontal resistance.
• To the downside, if ETH were to lose $2,420, then the next major horizontal support is $2,160.

• Next Support: $2,420
• Next Resistance: $2,720
• Direction: Bullish
• Upside Target: $3,050
• Downside Target: $2,160

Cryptonary's take

ETH has held and consolidated above a key technical level - the $2,420 horizontal support. During this period of consolidation, the RSI has also reset slightly, although it does remain below its moving average.

Our expectation is that ETH's next major move will be a breakout to the upside, with a breakout of $2,720, seeing ETH potentially push onto $3,050. Our view would be invalidated with a breakdown below $2,420.