ETH Technical analysis - 13 April 2025

[Forum Admin]

ETH:

• ETH's Open Interest (by the number of coins) remains high. This is due to the coin's value going down substantially (reflected in higher OI by the number of ETH), but there is still the appetite for funds to take advantage of the carry trade (Long Spot, Short Futures, and profit the Funding Rate).
  
• However, ETH's Funding Rate has recently flipped to negative, as we can see below, suggesting there is more of an appetite amongst traders to be Short. However, we might look to take the other side of this.
  

Technical analysis

• ETH has been in an aggressive downtrend for 4 months, reaching extreme oversold levels not seen since August 2024 and August 2023.
  
• Price is currently battling at the horizontal level of $1,530, whilst price is also squeezing into the local downtrend.
  
• The key level for the price to reclaim to the upside is the $1,745 horizontal level. If this happens and the cost can break out of the downtrend line, then $2,000 (psychological level) is the target.
  
• On Tuesday, the RSI went into extreme oversold levels. It has since bounced, and it's now pushing up against its downtrend line, whilst it's also got above its moving average.
  
• In terms of accumulation levels for ETH, we see it as being close to a bottom. We'd be accumulating for the long term (maybe smaller sizing against HYPE SOL, etc.) between $1,230 and $1,550.
  

• Next Support: $1,230
  
• Next Resistance: $1,745
  
• Direction: Neutral/Bullish
  
• Upside Target: $2,160
  
• Downside Target: $1,230
  

As we said, ETH has been in an aggressive downtrend for four months, down 65% from its highs. With us potentially beginning to turn on the macro front, it might be wise to shift from a bearish to a more bullish bias and look to pick up longer-term Spot bags. We'll be eyeing the range between $1,230 and $1,550.

In the short term, ETH might be able to attempt a breakout of its downtrend line here. However, the critical testing area will be $1,745. If ETH can reclaim that horizontal level and break the downtrend line, $2,160 is the target.