Ethereum (ETH) has shown significant strength recently, breaking above the critical $2,130 horizontal resistance. Analysts are now wondering whether the digital asset can touch the $2,640 mark, signaling further upward momentum.
According to insights shared by the pseudonymous crypto analyst Cryptonary, Ethereum’s recent surge is underpinned by positive technical indicators and an increase in open interest (OI). The analyst raises the question: Can ETH reach $2,640?
The technical analysis of Ethereum’s price movement reveals a breakthrough beyond the $2,130 horizontal resistance. The next targets on the upside are identified at $2,340 and $2,640. Cryptonary expresses confidence in the possibility of Ethereum reaching these levels before the end of the year.
However, the analyst emphasizes the importance of the $2,120 level, which was a prior resistance, now needing to act as a new support in case of a retest lower. The Relative Strength Index (RSI) has entered overbought territory across all timeframes, suggesting strong buying momentum.
Ethereum’s Market Dynamics
One notable aspect contributing to Ethereum’s bullish case is the substantial increase in Open Interest. ETH’s Open Interest has risen from $7.0 billion in just a few days to $7.8 billion. This surge in open interest indicates heightened market activity and increased trader participation.
Examining market mechanics further, the OI-Weighted Funding Rate has experienced a similar uptrend, reflecting increased interest in long positions. The rate reached 0.0340% and has pulled back slightly to 0.0250%. The Long/Short Ratio stands at a relatively healthy 1.018, signaling a balanced proportion between long and short positions over the last 24 hours.
Despite the notable increase in Open Interest, the analyst points out that the funding rate, while positive at 0.025%, is at an acceptable level. It suggests a healthier setup compared to Bitcoin.
While acknowledging the potential for a market flush-out, Cryptonary suggests that more positive funding rates might be needed for such a scenario. The technical analysis is deemed very positive, with the possibility of a price bounce from the mid-$2,100 range if the $2,120 level holds as support. Overall, Ethereum’s current setup indicates optimism for further upward movement in the near future.