Ethereum targets $4,000 after breakout

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 hit an al-ltime high in both USD terms and the number of coins (ETH) terms.
• However, ETH's funding is high here at 0.06%, 66% annually.
• This suggests a flush out is needed here also as there's a lot of leverage overly positioned one-sided, Long.

ETH's funding rate:

Technical analysis

• It is a massive breakout and potentially a game changer for ETH, with a Trump victory providing hope for a new regulatory regime.
• ETH smashed through two major horizontal levels, the first at $2,875 and the second one at $3,240.
• Price has now moved up to the next horizontal resistance at $3,480, and it has pulled back from there. Expected after such a huge move higher.
• Price is now battling to find and maintain support at the $3,240 horizontal level. It would be very positive for Price to hammer this level in as new support and spend some time cementing itself above this level.
• The RSI for ETH is also very high at 73. It's likely we need to see more of a pull back for price or at least a period of price slowing down and consolidating, ideally in the range above $3,200.

• Next Support: $3,100 to $3,240
• Next Resistance: $3,480
• Direction: Neutral
• Upside Target: $3,480 (and then $4,000)
• Downside Target: $3,100

Cryptonary's take

The Trump win has absolutely given fresh life to ETH and just generally the DeFi space. We expect price to slow down here, and ideally to just consolidate for a week or so between $3,200 and $3,400. This would give Alts/Meme's more room to breath and go higher, so we'd see that as positive. However, if there is a slight further pull back for ETH here, we wouldn't rule out a re visit to $3,100.