ETH’s range tightens ahead of 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 Funding Rate has fluctuated, but it has mostly remained positive, whilst its Open Interest (by number of coins) remains very high. This suggests that there's a big demand for the 'cash-and-carry' trade. This distorts the data, meaning OI and Funding become less of a signal for ETH.

ETH's funding rate:

Technical analysis

• ETH has broken out of its main downtrend line, and it's holding above its horizontal level of $1,745. If price loses this level, then we'd expect a move back to $1,600.
• To the upside, the key horizontal resistances are at $2,000 and $2,160.
• The RSI is in middle territory, and it's now sitting on top of its moving average; this is a support level for ETH.
• Price has remained in a tight range between $1,745 and $1,850. We are expecting a breakout, and likely to the upside, assuming the general market doesn't dramatically sell off.

• Next Support: $1,745
• Next Resistance: $2,000
• Direction: Neutral/Bullish
• Upside Target: $2,160
• Downside Target: $1,530

Cryptonary's take

Overall, we're relatively sceptical on the market now as we are expecting a pullback over the coming days/weeks. However, ETH is the setup that looks best for a move higher, if that's directionally how you want to bet. If the market can hold up, then ETH can break out and move higher, potentially to $2,000. However, due to our bearish stance on the market currently, we're not looking to play ETH here.

If ETH were to pull back to $1,530 to $1,600, it may be worth beginning to accumulate a very small bag for the long run, even if we do believe more in SOL and HYPE as outperformers over the coming 6-12 months.