ETH's Open Interest has remained at very elevated levels, with the Funding Rate now also at high levels (0.017%), indicating that Longs are paying a significant premium to Shorts to be Long.
ETH's leverage setup suggests that a leverage flush out is possible in the near-term.
Should a leverage flush out produce a substantial pull back in price, we'd be buyers of ETH upon a significant price pull back.
Technical analysis
ETH has broken above all horizontal resistances, with the $3,970 resistance now just 5% away. This is a significant long-term horizontal resistance.
ETH has essentially been straight up with the price now up 50% in 2 weeks.
ETH's RSI is in overbought territory, and at very lofty levels. This is the most overbought ETH's RSI has been since January 2021. This would suggest caution should be had in terms of buys/Longs at the current price.
Should ETH pull back, $3,480 is the next major horizontal support, with there being strong support down to $3,280.
A local support for ETH is at $3,630.
