Ethereum’s next target: $3,480 resistance

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 is still at all-time highs, having really kicked up higher over the last week. It's likely we'll see a shakeout at some point. However, this may last for more days/weeks.
• The Funding Rate has also increased back to its recent highs. This indicates that positioning is net Longs here, meaning Longs are potentially vulnerable to a flush-out.

ETH open interest at highs:

Technical analysis

• ETH looks really interesting here.
• ETH looks to be potentially forming a double top into the $3,400 area just shy of our $3,480 horizontal resistance.
• ETH did manage to find support locally at $3,050 and into $3,000, as we thought might be the case, with $3,00 being a psychological level.
• ETH is currently sitting on top of local support at $3,280. If ETH can hold support at $3,280, this improves the setup and enables ETH to possibly run to $4,000 upon a breakout of $3,480.
• If ETH were to lose the $3,000 level, then we'd expect the major support of $2,875 to hold.
• ETH's RSI has pulled back from overbought territory, and it also has printed any bearish divergences (unlike BTC).

• Next Support: $3,000
• Next Resistance: $3,480
• Direction: Neutral
• Upside Target: $4,000
• Downside Target: $2,875

Cryptonary's take

ETH is currently in an interesting spot between a key range of $3,000 to $3,480. We'd expect, with the bullish market we have, that ETH can reach $4,000 again in the coming weeks/months. We'd be buyers on dips, although we would remain underweight ETH against SOL, and we still favour being significantly overweight SOL. We expect ETH to move up with the rest of the market, but we still don't feel that it'll outperform other assets (SOL especially).