Market Direction

Is ETH heading for $2,550 or testing $2,150?

Published: Sep 11, 2024

Ethereum appears to be nearing a potential bottom as traders show indecision. Key support levels are holding firm, and bullish divergences hint at a possible recovery.

ETH's Open Interest has remained relatively flat, suggesting that traders aren't looking to aggressively trade ETH here.
ETH's Funding Rate flip-flops between slightly positive and slightly negative, indicating indecision amongst traders.
Overall, this is a healthier setup. ETH's Funding Rate is less negative than BTC's, and Open Interest hasn't ramped up. From a mechanics perspective, ETH is arguably an attractive Long at these prices, while the leverage market has seen a major flushing out.

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.

ETH's funding rate:

ETH OI-weighted funding rate and price fluctuations between September 8 and 9, 2024, indicating market trends.

Technical analysis

ETH has also fallen below its grey support box (between $2,330 and $2,470).
ETH did find support at our major horizontal support line of $2,150, though.
ETH has also put in a bullish divergence (lower low in price and higher low on the oscillator), with the higher low being put in just above oversold territory.
If ETH can break out from its local downtrend line, it's possible ETH could retest the $2,550 local horizontal resistance.
Beyond $2,550, the major horizontal resistance is at $2,875.

Cryptonary's take

Despite the fact we're still relatively wary of the market over the coming weeks, ETH looks as if it's either at or close to a bottom here. ETH has been down just shy of 50% from it's highs this cycle, whilst we've also seen a major resetting in the leverage market. Price is currently sitting on top of a major support zone between $1,900 and $2,150. If ETH does revisit this area, this is likely a good price to bid with a 12 month view.