07 September 2021

TA Tuesday: The magical number for ETH is $4k

Patrick Heusser

Patrick Heusser

Head of Trading bei Crypto Finance (Brokerage) AG

Über den Autor

I tried applying Elliot Wave again, but failed miserably.

SOL$ moved higher and reached $180. I will leave this be for now and stick to BTC$ and ETH$…

BTC$ (4h)

The price pushed outside of the $44-50k range, and is currently keeping its head nicely above the base line and the cloud. It is a tough one to chart, but from what I see (in terms of market structure) it looks like healthy spot buying interest most of the time. We saw some perpetual futures funding rates spike over the weekend, but with Monday being a US bank holiday, it was almost expected. The term structure for most of the bitcoin futures looks pretty regular with 31-Dec-21 maturities trading at around 4-5% in contango. We are far away from the crazy basis we saw in April when we reached an ATH of around 63k. There we traded way above 25% (annualised rolling 3mth basis).

ETH$ (4h)

We had a nice breakout with agressive buying pressure that pushed the price roughly 20% higher in just a few days. The magical number is once again $4k. Last time in May when we pushed through the $4k level, we rolled over pretty agressively. We have a similar story here with the structure of the market. Funding rates are nowhere close to what they were in April (or May, to be exact, as ETH topped out about one month later than BTC). It is hard to say if the EIP1559 plays a role in the steady price recovery without leveraged buyers pushing the market. But currently (see bitcoin) it looks like steady spot buying is slowly but surely pushing prices above the $4k mark.