According to insights from Cryptonary, Ethereum (ETH) seems to be gearing up for a substantial surge, with a target set at an impressive $2,340. The technical analysis reveals a noteworthy pattern, as ETH consistently encounters resistance along the underside of the primary uptrend line.
However, the optimism persists, especially if the digital asset manages to break through the $2,120 mark, signaling a potential climb to the coveted $2,340 level. The mechanics of Ethereum are reported to be in a robust state, portraying a healthy foundation for further growth.
Delving deeper into the analysis, the 12-hour chart of ETH presents a comprehensive view. The resistance at the uptrend line is a notable challenge, but the optimistic target of $2,340 is well within reach. On the downside, $2,120 is expected to act as a strong support level, having previously served as a resistance point.
The Relative Strength Index (RSI) indicates that ETH is currently overbought across major timeframes. While this might raise cautionary flags, analysts suggest that the RSI is not alarming at its current levels, although it merits monitoring if the uptrend persists.
Ethereum Open Interest & Funding Rate Dynamics
Examining market mechanics, ETH’s Open Interest stands at an impressive $8.28 billion, lingering close to its yearly high of $8.47 billion. The OI-Weighted Funding Rate, slightly higher than usual at 0.015%, suggests a prevailing bias towards Long positions rather than Short. Despite this, analysts emphasize that this isn’t yet a cause for concern unless funding becomes significantly positive.
Cryptonary’s take on the situation provides additional perspective. Despite Ethereum’s recent underperformance relative to Bitcoin (BTC), analysts express a favorable outlook for ETH. The suggestion is that Ethereum may still have considerable room for upward momentum. Furthermore, the mechanics of ETH are deemed healthier, with Open Interest not reaching overheated levels and Funding maintaining stability in the mid-0.01% range.
As part of their strategy, Cryptonary indicates that if ETH were to retest the $2,100 level, they would consider becoming Dollar-Cost Averaging (DCA) buyers of ETH. Additionally, they express an intention to augment their Spot bags for the long term, highlighting a belief in Ethereum’s potential for sustained growth in the unpredictable world of digital assets.