ETHUSDT Bearish or Bullish?

19 ago

ETHUSDT

ETH is definitely the weakest of the 3 majors (BTC, ETH, SOL)

However, I am seeing way too much bearishness on ETH, which is warranted due to its piss poor price action, but that does not mean it is going to teleport down to sub 2k.


Signs of over bearishness:

- OI divergence and finding support at previous areas (price is lower but OI is the same as it was back in April and May 2024)

- Funding rates in the negatives or near zero (more shorts than longs)


I do not believe ETH will moon or out pace BTC or SOL. But I do think this increased bearishness has swung too far in one direction and when that happens it typically swings back hard in the other direction.

ETH definitely needs more time to stomach this recent sell off but even if it retests 2200 again I think a bottom is close or in. There is more liquidity sitting at prices higher above.

I expect ETH to eventually take out 2900 and then come back to 3300 and 3500 by at least EOY.

Let's see what happens. Good luck to the shorts heading into election season.