ETH Still Struggling to Build Bullish Momentum
ETH is struggling to build bullish momentum From a mechanical perspective, ETH is similar to BTC, but slightly behind price-wise. ETH Open Interest has moved up slightly but remains relatively low compared to historical levels.
However, the Funding Rate has risen through Wednesday morning to now sit north of 0.016% – increasing the bias among traders to Long.
Technical analysis
- Once ETH breaks below its rising trendline, it will likely lack bullish momentum.
- The price has bounced off the $2,130 horizontal support, which was previously a major horizontal resistance. However, the price is now finding resistance at the bottom of the rising trend line.
- If the price is unable to reclaim the rising trend line, we will likely see further downside and $2,130 will be retested again.
- If the price can reclaim the uptrend, the key horizontal resistance is at $2,340.
- RSI has reset on all major time frames. RSI is not a concern at all on ETH.
We predicted in Monday's analysis that ETH would seek a relief rally and possibly find resistance to the bottom of the ascending trend line. That's what we have so far.
Looking ahead, ETH needs to reclaim the ascending trend line, if it can't, $2,130 is likely the next destination. Either way, ETH looks relatively heavy and can't seem to gain any upward momentum.
However, we remain positive and constructive on ETH, and we would look to continue DCA to ETH sub $2,130 given this price.
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