Ethereum has faced a challenging start to the year, shedding 15% from its recent local highs and dipping to a low of $3,157. The altcoin leader’s decline comes amid heightened market volatility and uncertainty, with many investors reevaluating their positions following the recent selloff. However, despite the downturn, on-chain data suggests that underlying investor sentiment remains robust. Related Reading: Bitcoin Faces Major Deleveraging – Analyst Explains Price Crash Below $100K According to data from IntoTheBlock, Ethereum saw significant outflows from exchanges this week, with net outflows surpassing $1.4 billion—the highest level since November. Such activity often signals strong accumulation trends as investors move their holdings off exchanges and into cold storage or other wallets, indicative of long-term confidence in the asset. These substantial outflows underscore Ethereum’s resilience even amid challenging price action. Analysts are closely monitoring whether these accumulation trends can offset the bearish momentum and spark a recovery in the coming weeks. With Ethereum trading near critical support levels, the next moves will be pivotal in determining the direction of its price in 2025. As bullish seasonality for altcoins often kicks in during post-halving years, many believe that Ethereum could soon reclaim its upward trajectory, contingent on both market conditions and broader macroeconomic factors. Ethereum Prepares For Rebound Ethereum has shown signs of recovery after its recent drop, now attempting to break above the $3,300 level. The altcoin leader has faced considerable challenges, with a 15% decline from its recent highs putting pressure on bullish sentiment. However, key on-chain metrics indicate that Ethereum’s fundamentals remain strong, pointing toward potential growth in the coming months. Data from IntoTheBlock, shared on X, highlights a significant development: this week saw net $ETH outflows from exchanges exceeding $1.4 billion, the highest level since November. Such substantial outflows often signal that investors are moving their holdings off exchanges, a behavior typically associated with accumulation. This trend suggests that, despite recent bearish price action, confidence in Ethereum’s long-term potential remains intact. While Ethereum’s recent price action may appear underwhelming to some, these accumulation trends provide a bullish underpinning for the asset. Historically, large exchange outflows have preceded significant price rallies, as reduced sell-side liquidity can drive upward momentum when demand increases. Related Reading: Dogecoin Testing Key Demand Zone – Can DOGE Push Above $0.40? As Ethereum works to reclaim higher levels, breaking above $3,300 could signal the beginning of a more sustained recovery. With strong fundamentals and growing investor confidence, Ethereum appears well-positioned for a potentially bullish 2025. However, the asset must navigate current market volatility to confirm its uptrend. Testing Weekly Demand Ethereum is trading at $3,250, reflecting ongoing struggles to break above the $3,300 resistance level. The price action remains tentative as ETH tests critical weekly demand levels. This area has historically provided strong support, and if Ethereum manages to close above the $3,100 mark, it could pave the way for a meaningful rebound in the coming days. The current consolidation phase highlights a market looking for direction. For bulls to regain control, Ethereum must break above key resistance levels. Reclaiming the $3,750 mark is crucial to confirm a bullish breakout and signal a potential uptrend. Such a move would not only restore investor confidence but also position ETH to retest higher levels as market sentiment shifts. However, failure to hold the $3,100 demand zone could lead to further downside pressure, with lower support levels likely to be tested. The coming sessions will be pivotal as Ethereum navigates these key levels. Related Reading: Key Metrics Reveal Bitcoin STH Support Levels Around $89K–$86K – Is BTC At Risk? With the broader market sentiment in flux, ETH’s ability to stay above its critical support zones will determine whether a bullish trend emerges or a prolonged consolidation phase persists. Investors are watching closely as ETH attempts to establish its next significant move. Featured image from Dall-E, chart from TradingView
The past few days have been challenging for Ethereum investors, as the altcoin leader kicked off 2025 with a steep 15% drop from local highs, plunging to lower demand levels. This selloff has mirrored the broader market’s volatility, leaving many questioning the strength of ETH’s recovery potential. Despite the rocky start, ETH’s fundamentals continue to […]
After a lackluster 2024, Ethereum has started 2025 with a bang, surging over 13% since the year began. This impressive performance has reignited optimism among investors who are anticipating a bullish year for ETH and the broader altcoin market. Ethereum’s early strength has raised the critical question: Can it outperform Bitcoin in this post-halving year? […]
Ethereum is trading below last year’s highs as investors eagerly await a breakout to confirm the start of the anticipated Altseason. While ETH’s price action has been subdued, traders remain optimistic about its potential to perform exceptionally well in 2025, given its historical cycles and the market’s overall bullish sentiment. Related Reading: Key Indicator Signals Buy On XRP 4-Hour Chart – Analyst Predicts A Price Rebound Top analyst Carl Runefelt recently shared a technical analysis on X, highlighting that ETH is currently trading within an ascending channel. This pattern suggests a possibility of a short-term pullback before Ethereum gains momentum for its next upward leg. Runefelt’s analysis aligns with the cautious optimism prevalent in the market as traders monitor key support and resistance levels for signs of a breakout. The coming weeks are critical for Ethereum as it battles to reclaim its highs and assert dominance in the crypto market. A breakout could signal the start of a broader altcoin rally, solidifying ETH’s position as a leader in the Altseason narrative. Until then, investors and traders are closely watching Ethereum’s price movements and technical indicators, preparing for what could be a pivotal year for the second-largest cryptocurrency. The Ethereum Path Into 2025: Optimism Amid Consolidation Ethereum endured an underwhelming 2024, underperforming Bitcoin and failing to ignite the anticipated early Altseason. However, many analysts predict a dramatic turnaround this year. Historically, post-halving years have been exceptional for altcoins, and Ethereum appears primed to benefit from this trend. Expectations are mounting that ETH will “melt faces” in 2025, delivering significant gains. Top analyst Carl Runefelt recently shared a technical analysis on X, offering a detailed look at Ethereum’s price structure. According to Runefelt, ETH is currently trading within an ascending channel after hitting its previous target. While this pattern often signals bullish continuation, there is also a risk of a temporary breakdown. Runefelt suggests that if Ethereum fails to hold its current position, it might retest the $3,500 level before regaining upward momentum. Such a retracement, he posits, could set the stage for Ethereum’s next major rally. Related Reading: Solana Back Above Weekly & Monthly Support Levels – Analyst Expects New ATH Reclaiming last year’s highs will be critical for Ethereum, as it would solidify its position as a market leader and instill confidence among traders and investors. The broader crypto market is gearing up for what many expect to be a massive 2025, with Ethereum positioned at the forefront of a potential altcoin resurgence. Whether ETH breaks out or briefly pulls back, this year could define its trajectory for years to come. Technical Analysis: Price Consolidation Ethereum is currently consolidating around the $3,650 level after a clean breakout above the 4-hour 200 moving average at $3,629. This breakout marked a critical moment for ETH, as it demonstrated renewed bullish momentum in the short term. Holding the 4-hour 200 moving average as support could signal price strength, offering a foundation for Ethereum to push higher in the coming days. However, the market remains cautious. If Ethereum fails to hold this key indicator, the price could slip into lower demand levels. A retest of the $3,500 mark would then become a likely scenario. This level has been a significant area of interest for traders and could be a base for another potential rebound. Related Reading: Dogecoin ‘Looks Undeniably Impulsive’ – DOGE/BTC Ratio Uncovers Strong Accumulation The next few trading sessions will be crucial in determining whether Ethereum can build on its recent breakout or if a pullback is in store. A sustained hold above the $3,629 level would signal strong buyer interest and pave the way for a push toward higher resistance levels. Conversely, losing this mark may lead to consolidation or further downside, testing the resilience of Ethereum’s bullish structure. Featured image from Dall-E, chart from TradingView
Ethereum had an underwhelming 2024, underperforming against Bitcoin and many top altcoins throughout the year. While BTC soared to new all-time highs, ETH struggled to reclaim its bullish momentum, leaving investors questioning its position in the market. However, next year could tell a different story, as historical trends suggest altcoins, including ETH, tend to shine […]
Ethereum (ETH) has been underperforming in this cycle, trailing far behind Bitcoin’s impressive rally to new all-time highs. While Bitcoin captures headlines with its continued surge, ETH struggles to reclaim its yearly highs, leaving many investors questioning its next move. Despite the lackluster price action, data from CryptoQuant CEO Ki Young Ju reveals a silver […]
Ethereum (ETH) stands at a critical turning point, with opinions split on its future performance this cycle. Some analysts argue that ETH will continue to lag, possibly underperforming against other assets like Bitcoin, which has shown strong momentum. However, others are optimistic, believing Ethereum is poised for an aggressive rally, especially if it can establish a solid bounce from current lows. Related Reading: Bitcoin Open Interest Dropped Significantly – Investors Cautions Amid US Election Week? Renowned crypto analyst Ali Martinez has shared a compelling technical analysis, highlighting a correlation between ETH and the S&P 500. According to Martinez, this relationship could signal a substantial upward move for Ethereum, aligning with broader market trends in traditional finance. Martinez’s analysis suggests that Ethereum could be on track for a major breakout if the current setup holds, with a target around the $10,000 mark. As Ethereum trades near a crucial support level, the coming days will be pivotal in determining its direction. With significant upside potential, if a bullish trend takes hold, this moment may define ETH’s trajectory for the remainder of the cycle. Investors are now watching closely, weighing ETH’s next moves against crypto and traditional market cues. Is Ethereum Preparing To Rally? Ethereum (ETH) has been trading precariously around the $2,400 level, with recent dips below this threshold sparking concern among investors hoping for a bullish breakout. This uncertainty has heightened as traders navigate a market riddled with fear, wondering if ETH is about to embark on a long-awaited rally or fall to new lows. Top analyst and investor Ali Martinez has provided an optimistic outlook, sharing a technical analysis on X that suggests Ethereum’s price movements closely mirror those of the S&P 500. According to Martinez, this dip could be the final one before Ethereum experiences a massive upswing, potentially tripling in value to hit the ambitious $10,000 target. Martinez’s analysis taps into broader market sentiment, noting that ETH has shown resilience at key levels and that this correlation with the S&P 500 could indicate strength and stability shortly. As the U.S. election results unfold and the Federal Reserve’s upcoming interest rate decision looms, the potential for volatility remains high. These factors could introduce sharp price swings, driving ETH lower temporarily before it rebounds and gains momentum for a sustained rally. Related Reading: Solana Likely To Target $200 ‘If It Holds Current Support’ – What To Expect The combination of market catalysts and Martinez’s analysis has sparked cautious optimism, suggesting that while the near-term risk is high, Ethereum could be on the verge of a significant breakout if it holds its ground through the coming turbulence. ETH Testing Crucial Demand Ethereum briefly dipped below the $2,400 mark, a key support level, before rebounding to $2,440. This bounce has given bulls hope, but to maintain upward momentum and challenge the prevailing bearish outlook, ETH must keep rising and target higher supply zones. Critical to this effort will be breaking above the 200-day exponential moving average (EMA) at $2,758—a level that has consistently pushed down price action and acted as a significant resistance since early August. If bulls succeed in reclaiming this EMA, it could mark a shift in momentum, potentially setting up ETH for a stronger bullish trend. However, if ETH fails to hold above $2,400 in the coming days, it risks a deeper retracement. Analysts have identified the $2,220 level as a crucial line of defense. Related Reading: Dogecoin Analyst Reveals Buying Opportunities At Lower Prices – Details This lower demand zone could provide the final support necessary to prevent further losses, but if breached, it would likely deepen the bearish sentiment surrounding Ethereum’s current price action. This week will be pivotal, as holding above these key levels could provide ETH with the stability it needs to stage a more aggressive push upwards. Featured image from Dall-E, chart from TradingView
Ethereum has experienced a sharp retrace, dropping over 13% since Monday and stirring concerns among investors who had anticipated a breakout. This sudden pullback, which took ETH as low as $2,380 on Friday, has injected a sense of worry into the market, leaving many to question the strength of its recent rally. However, on-chain data from Santiment reveals an intriguing development—whale activity in Ethereum surged to a six-week high just as the price dipped. Related Reading: Dogecoin Liquidity Sweep Signals DOGE Is Ready For A Rally This spike in large transactions suggests potential accumulation by whales, a pattern often viewed as a bullish signal when occurring near key support levels. Historically, significant whale buying during downturns hints at confidence in a future recovery, as these large holders tend to seek undervalued assets with high potential. The next few days will be critical for Ethereum as investors await signs of stabilization or further decline. A solid hold above recent lows could set the stage for a rebound, while a failure to maintain support may reinforce bearish sentiment. For now, all eyes remain on Ethereum’s price movements, as well as on whale behavior, which could provide insights into Ethereum’s direction in the near term. Ethereum Preparing For A Rally? Despite Ethereum’s recent price retracement, sentiment among investors and analysts remains bullish for the near future. According to key data from crypto analysis platform Santiment, Ethereum’s whale activity reached a six-week high as the price declined to $2,380 on Friday. Historically, such a spike in activity from whales—large stakeholders with substantial capital—signals accumulation. When whales begin to accumulate, it’s often an indicator of renewed confidence, suggesting these key players see long-term value at current prices. While an immediate price rebound isn’t guaranteed, this pattern is encouraging. Major accumulation phases typically happen in periods of price weakness or extended consolidation, laying the foundation for potential upward movement. Ethereum’s price action has been lackluster in recent months, with ETH struggling to break out despite occasional bullish sentiment. Some analysts suggest this may be due to heavy accumulation dynamics led by institutional or “smart money” investors who gradually increase their holdings during periods of low momentum. Related Reading: Number Of Bitcoin Bulls Increases As Funding Rate Shows Steady Growth – Details As whales increase their activity, it’s a potential sign that Ethereum is gearing up for a stronger move once accumulation is completed. With support from high-cap stakeholders, Ethereum’s price may eventually reflect this renewed confidence. For now, investors are closely watching for consolidation near key support levels, which could provide the basis for a breakout. If whale accumulation continues in the coming weeks, it could drive upward momentum, validating the long-term bullish outlook shared by many analysts and investors. ETH Price Action Ethereum is currently trading at $2,466 after a pullback from the $2,550 level, indicating a struggle to maintain bullish momentum. This retracement has brought ETH closer to its recent local lows but still within a sideways pattern, preserving a slightly bullish outlook as it hovers above key support areas. For Ethereum bulls to regain control, a push above $2,550 is critical. Breaking this level would signal renewed strength and allow ETH to target the 200-day exponential moving average (EMA) at $2,783. Achieving this would mark a new local high, potentially reinforcing bullish sentiment among investors. However, if Ethereum’s price fails to rise in the coming days, the likelihood of prolonged consolidation or even a deeper correction increases. Such a scenario would likely introduce additional bearish pressure, with ETH potentially revisiting previous support levels as traders reassess the market’s direction. Related Reading: On-Chain Indicator Signals Bitcoin Cycle Top Is Far Ahead – Data Confirms Bullish Outlook For now, Ethereum’s price action is delicately balanced, with the $2,550 level and the 200-day EMA representing crucial milestones for bulls aiming to sustain an uptrend in the near term. Featured image from Dall-E, chart from TradingView
Ethereum could be preparing to bounce from a demand zone at $2,500, as fresh activity in ETH derivatives markets catches traders' attention.
Ethereum, the second-largest cryptocurrency by market capitalization, is experiencing increasing bearish sentiment in its futures market, according to a recent analysis by CryptoQuant analyst ShayanBTC. The analyst reported on the CryptoQuant QuickTake platform that Ethereum’s futures market has shown its lowest funding rates of 2024. This trend indicates that traders in the perpetual futures market are currently less optimistic about Ethereum’s short-term price movements. Related Reading: Ethereum Sees Massive Outflows from Derivatives: What Does This Mean For ETH? Ethereum Declining Funding Rates And Market Implications According to ShayanBTC, the 50-day moving average of Ethereum’s funding rates has been on a consistent downward trend, indicating a persistent bearish outlook among futures traders. For context, funding rates in perpetual futures contracts are payments made between long and short traders based on the difference between perpetual futures and spot prices. When funding rates are positive, it implies that long traders pay short traders, suggesting bullish sentiment. Conversely, negative funding rates mean short traders pay long traders, signaling a more bearish market stance. In the case of Ethereum, the current negative trend in funding rates highlights a lack of buying interest in the perpetual futures market. Shayan noted: For Ethereum to recover and reach higher price levels, demand in the perpetual futures market must increase. If the current trend of negative funding rates continues, it is likely that Ethereum will experience further price declines in the mid-term. Is A Rally Still Possible? The impact of these bearish funding rates has been quite evident in Ethereum’s recent performance. So far, the cryptocurrency has experienced a consistent decline, dropping by 4.9% in the past 24 hours alone. This decline has dragged Ethereum’s price below the $2,300 mark, compounding its losses over the past month to more than 10%. The persistent bearishness is partly attributed to the “lack of buying interest” in the futures market, as noted by the CryptoQuant analyst. Despite the negative sentiment in the futures market, some analysts remain optimistic about Ethereum’s potential for a rebound. One such analyst, Koroush AK, expressed a more positive outlook, suggesting that Ethereum is due for a significant bounce. Related Reading: Analyst Predicts $4,000 Mid-Term Target for Ethereum, Declares End to ETH Correction Koroush pointed to higher time frames, highlighting the 100-week moving average and the key psychological support level at $2,000 as potential catalysts for a recovery. He anticipates a 10-20% bounce for Ethereum in the coming weeks despite the current market conditions. $ETH Ethereum due a large bounce. Zooming out and looking at the higher time frames; -100 week moving average -Key psychological support ($2000) Expecting a 10-20% bounce over next few weeks. pic.twitter.com/THPPc99oMf — Koroush AK (@KoroushAK) September 16, 2024 Notably, while negative funding rates often reflect a bearish market sentiment, they can also be early indicators of potential market recovery. Negative rates can result in short liquidation cascades, where short positions are forced to close, leading to a sharp price reversal. Featured image created with DALL-E, Chart from TradingView
Amid Ethereum’s continuous free fall in price, renowned crypto analyst Michael Van De Poppe highlighted the asset’s current weakness in a post on X earlier today and when there could be a potential rebound. Van De Poppe’s outlook comes at a time when Ethereum, the second-largest cryptocurrency by market capitalization, has continued to experience significant downward pressure, much like its counterpart, Bitcoin. In the past 24 hours, ETH has seen a decline of 3.7%, bringing its current trading price to $2,491. Related Reading: Is Ethereum Finally Over the Slump? These 2 On-Chain Metrics Suggests a Bullish Turn Ethereum Outlook: When Will A Price Recovery Happen? Van De Poppe noted in the post that Ethereum was rejected at the 0.046 BTC level and is now approaching high timeframe support areas. The analyst mentioned the possibility of a bullish divergence forming, which could lead to a rally later this week or next. However, this potential recovery is contingent on ETH finding support and reversing its current trajectory. $ETH is super weak, it remains to be the case. Rejected at 0.046 BTC and is currently falling towards HTF support areas. There might be a case of a bullish divergence standing up, but then it should be rallying from later this week into next week. pic.twitter.com/liVwA7moSm — Michaël van de Poppe (@CryptoMichNL) August 28, 2024 Another crypto analyst, Javon Marks, shared a more optimistic outlook for Ethereum, drawing parallels with Bitcoin’s recent performance. Marks suggested that Bitcoin’s earlier successful breakout above $67,000 hints at what’s next for ETH. He speculated that if Bitcoin could continue to climb, it could pave the way for Ethereum to reach its target of $4,811 or higher. However, this potential recovery depends on Bitcoin’s ability to maintain its upward momentum and break above key resistance levels. Marks noted: Bitcoin climbing even more for ETH’s ‘following’ fulfillment to $4811.6 could result BTC breaking above $67,559, which opens up $116,000+ and much, much more room to lead the crypto market into heightened bullish phases. Simplicity. Market Liquidations Surge As Traders Bet On Rising Prices Meanwhile, the recent price drops in Ethereum and Bitcoin have significantly impacted traders, with many being caught off guard by the sudden downturn. According to data from Coinglass, over 92,000 traders were liquidated in the past 24 hours, resulting in total liquidations of $325.03 million. Ethereum accounted for $86 million of these liquidations, with $67.90 million coming from long positions. This suggests that many traders expected ETH to rise in price, only to be met with the opposite outcome. Bitcoin, too, saw substantial liquidations, accounting for $111.78 million of the total. Related Reading: Ethereum Price Dives: Is Bearish Control on the Horizon? Similar to Ethereum, the majority of these liquidations were from long positions, indicating that many traders did not anticipate the price decline. Featured image created with DALL-E, Chart from TradingView
Despite Ethereum’s recent lackluster performance, Glassnode Co-founders, under the name ‘Negentrophic’ on Elon Musk’s X social platform, assert that ETH’s potential has yet to be fully realized. Analyzing historical data and market patterns similar to those in early 2021, Negentrophic predicts that Ethereum could reach a high of $7,500, a forecast based on current market structures and technical indicators such as the 161.8 Fibonacci extension level. Related Reading: Is Ethereum About To Take Off? Analysts Weigh In Amid ETF Approval Date Rumors Diving Into The $7,500 Prediction Assessing the prediction from these experts, a Fibonacci extension level seen in 2021, which signaled a major rise for Ethereum, seems to have now emerged on the ETH chart, suggesting that history might indeed repeat itself. The technical analysis shows a developing bull flag pattern on Ethereum’s chart, which typically indicates the continuation of a bullish trend. Ethereum could be primed for a substantial price increase if this pattern holds, especially considering the increased market interest and forthcoming ETH spot ETF trading. For Ethereum to achieve the anticipated $7,500 price target, it must first overcome several significant resistance levels. The initial major hurdle is the $4,000 mark, aligned with the 1.618 Fibonacci extension from the previous cycle. Surpassing this level would confirm the bullish market structure and pave the way for reaching higher price targets. Negentrophic particularly noted on X: We believe Market moves in structures. And this structure gives us a target at ~7500 as a Final High for ETH. That is the 161.8% Fib-extensions from the structure, we currently see developing. That would mirror the Fib-extension we saw back in 2021. And it would also imply a strong rally in ETH to set in …. soon! Ethereum Signs of Recovery Meanwhile, In the current market environment, ETH has shown signs of recovery, rising from lows below $3,300 to around $3,483. However, the road to recovery is still fraught with challenges, as indicated by a slight downtrend in its weekly performance. Market experts like Quinn Thompson of Lekker Capital have echoed similar bullish sentiments for Ethereum, suggesting a potential rise to $7,000 by the upcoming US election in November. Related Reading: Ethereum Price Roadblocks: What’s Hindering A Fresh Increase? This projection aligns with a broader optimism in the crypto community, where the mood has shifted from overwhelmingly bearish to cautiously optimistic about a significant surge for major cryptocurrencies. Title: We are amidst one of the most obvious and attractive crypto buying opportunities of recent memory. Subtitle: While the market has completely reset, the structurally positive election, liquidity and crypto momentum cycles remain intact. Body: In all of my 5 years in… — Quinn Thompson (@qthomp) June 26, 2024 Featured image created with DALL-E, Chart from TradingView
Prominent crypto analyst Jelle has projected Ethereum (ETH) to surge to $5,000 by the end of this year. This prediction comes with a notable reason from a technical perspective. Ethereum Rally: Setting the Stage For New Peaks Jelle’s forecast comes after Ethereum is experiencing a form of stabilization above the $3,500 mark, following a correction from its March high of over $4,000. Related Reading: Bitcoin, But Ethereum Holds Potential for Surprise — QCP Capital As the crypto community watches closely, Jelle’s insights suggest significant bullish potential for Ethereum, particularly as the market anticipates the launch of spot Ethereum exchange-traded funds (ETFs). Jelle’s analysis points to a pivotal moment for Ethereum. After a brief dip in price, Ethereum has rebounded, reaching as low as $3,384 last Friday; the asset is currently trading around the $3,500 mark and demonstrating a recovery though with a 2.2% decrease in the last 24 hours and nearly 5% over the past week. This stabilization is a minor fluctuation and a critical support level that could foresee significant price movements. According to Jelle, “ETH successfully turned $3,500 into support. Very few people are ready for this one to make new all-time highs, but $5,000 ETH is very much on the menu this year. Let’s roll.” This statement underscores a strong conviction that Ethereum is recovering and gearing up for a substantial upward trajectory. The current market dynamics provide a fertile ground for such optimism. Ethereum’s resilience in maintaining key support levels amidst market fluctuations bodes well for its potential to breach previous highs. The anticipated introduction of spot Ethereum ETFs is expected to inject further vigor into its market cap, attracting institutional and retail investors drawn to its ecosystem and the promise of enhanced liquidity and regulatory compliance. $ETH successfully turned $3,500 into support! Very few people are ready for this one to make new all-time highs, but $5,000 ETH is very much on the menu this year. Let’s roll. pic.twitter.com/k438SvCX2o — Jelle (@CryptoJelleNL) June 17, 2024 Strategic Movements and Market Sentiments The broader crypto market, especially Ethereum, is buzzing with activity, anticipating the spot on ETH ETFs. Recent data from NewsBTC highlights that the crypto community is particularly bullish on Ethereum, as evidenced by the substantial number of contracts that expire ETH options. Most of these are call options, betting on Ethereum’s price rise, with a notably low put-call ratio of 0.36, signaling a strong bullish sentiment among traders. This optimistic outlook is further supported by significant buying activities from permanent holders, particularly institutions. On June 12, these investors made one of the largest daily purchases of Ethereum, buying 298,000 ETH, just shy of the record 317,000 ETH purchased on September 11, 2023. Such investment activity not only underscores the confidence in Ethereum’s long-term value but also indicates a market poised for a rally, especially with potential catalysts such as the approval of ETH spot ETFs on the horizon. Related Reading: Ethereum Withdrawals From Coinbase Top $1.2 Billion, What’s Going On? Moreover, QCP Capital’s analysis reinforces this sentiment, noting Ethereum’s higher implied volatility than Bitcoin. This suggests that while the general crypto market might experience subdued activity by summer, Ethereum could see significant trading volumes and price action, particularly if the ETFs start trading live. Featured image created with DALL-E, Chart from TradingView
Recent developments in the crypto market indicate a strong bullish sentiment among Ethereum traders, particularly in the options market. Amid the growing anticipation for potential approvals of spot Ethereum exchange-traded funds (ETFs), there has been a noticeable shift in option pricing, with Ethereum call options becoming more expensive than put options across all expiries. This pricing pattern suggests the market is optimistic about Ethereum’s price prospects. Notably, A call option gives the holder the right, but not the obligation, to buy an asset at a specified price within a specific time frame. Related Reading: Is Ethereum Set For A Major Rally? Options Traders Bet Big On $3,600+ Targets For June This option type is typically purchased by traders who believe the asset’s price will increase. Conversely, a put option provides the holder the right to sell the asset at a predetermined price and is often used as protection against a decline in the asset’s price. Market Indicators Point To A Bullish Ethereum Luuk Strijers, CEO of Deribit, highlighted this trend in his communication with The Block. He noted that the “put minus call skew is negative across all expiries and increasing further beyond the end-of-June expiry, a quite bullish signal.” Additionally, the basis, or the annualized premium of the futures price over the spot price, has increased to around 14%, further reinforcing the bullish outlook. The analysis reveals that traders prefer to purchase call options at a premium compared to put options, particularly for those set to expire at the end of June and later. This pattern is a sign of a bullish market, indicating that traders are not as interested in securing protection against potential price drops as they are in anticipating that Ethereum’s value will keep climbing. Meanwhile, after the US Securities and Exchange Commission (SEC) unexpectedly asked for changes in filings, there has been a resurgence in optimism regarding the possible approval of spot Ethereum ETFs. This optimism has translated into significant market activity, with Deribit experiencing nearly unprecedented trading volumes. Strijers remarked, “We recorded an almost unprecedented trading volume of $12.5 billion notional over the last 24 hours.” This surge in trading volume and market interest reflects how traders and investors position themselves to capitalize on the potential approval of spot Ethereum ETFs. According to data from Deribit, over $480,000 calls will expire by the end of this month, with a notional value of more than $1.7 billion. The data further reveals that the strike price reaches as high as $7,000, with a total intrinsic value of $1.452 billion, indicating that many Ethereum options traders are highly bullish on ETH. ETH Price Performance And Forecast Meanwhile, Ethereum is undergoing slight retracement, down by 2.4% in the past 24 hours, with a trading price of $3,690. Despite this pullback, the asset has maintained a strong uptrend, rising nearly 25% over the past seven days. As the market’s anticipation around spot ETH ETFs grows, a prominent crypto analyst has suggested a potential price movement for Ethereum, indicating a brief pullback at around $4,000 before surging to new all-time highs. Related Reading: Ethereum Nears Crucial Breakout: Could $4,000 Be The Next Move? According to the analyst, while there might be some bumps, reaching an all-time high of $5,000 seems “inevitable” for Ethereum. $ETH: I think we pullback briefly around 4k but this certainly breaks all time highs if/when ETF gets approved. This still seems like a free trade for ETH going to ATH, which is at 5k. Could be some bumps along the way but it seems inevitable. I have both SOL and ETH and not… pic.twitter.com/IznlJ0RAyl — Altcoin Sherpa (@AltcoinSherpa) May 22, 2024 Featured image created with DALL·E, Chart from TradingView
Ethereum (ETH), the second-largest crypto by market capitalization, has recently shown signs that suggest a potential rebound is on the horizon. Analysts have been closely monitoring various technical indicators, and one such analyst, Ali, has highlighted a key signal that points to an impending price surge. Related Reading: Ethereum Price Anticipates Upside Break To Shift Sentiment Towards Bullish TD Sequential Signals Buy As Ethereum Eyes Recovery According to Ali’s social media platform X analysis, the TD Sequential indicator on Ethereum’s daily chart has issued a strong buy signal, hinting at a possible upward movement lasting one to four candlesticks. The TD Sequential presents a buy signal on the #Ethereum daily chart! It anticipates that $ETH could see a rebound of one to four candlesticks. pic.twitter.com/Vg7FTl9X2a — Ali (@ali_charts) May 15, 2024 This positive outlook is supported by Ethereum’s recent performance, which increased the asset by 2.3% over the last 24 hours. However, Ethereum remains below the critical $3,000 mark. Despite the optimistic technical signals, external factors such as regulatory challenges could influence Ethereum’s trajectory. Specifically, the potential decline of the spot Ethereum ETF application with the US Securities and Exchange Commission (SEC) is a concern, as analysts like Eric Balchunas of Bloomberg suggest that the SEC’s view of ETH as a security could significantly lower the chances of ETF approval. TLDR: the SEC asked commenters re the Eth spot ETFs whether these filers have properly filed their ETF listing proposals as commodities. This shows the SEC is perhaps considering to Eth is a security in their denial. Our odds of approval remain the same: slim to none. Nice job of… https://t.co/g9HGPzGyOp — Eric Balchunas (@EricBalchunas) May 14, 2024 Market Sentiments And Options Trading Trends While the regulatory landscape presents challenges, market sentiment around Ethereum remains largely bullish. The options market, in particular, shows a clear preference for calls over puts, indicating that traders are betting on Ethereum’s price increase. Data from Deribit, a leading crypto options exchange, reveals that the most popular strike price among these bullish bets is an ambitious $6,500. This concentration of call options, especially those above the $3,600 mark, suggests that a significant portion of the market expects Ethereum to reach higher levels by the end of June. In contrast, According to a recent NBTC analysis, Ethereum’s failure to breach the $2,925 resistance level could trigger another price decline. Initial support is located near the $2,880 level, followed by major support at the $2,860 zone. Related Reading: Bitcoin, Ethereum, And Solana: Galaxy Digital CEO Predicts Next Market Movements Should Ethereum break below $2,810, it could potentially fall towards the $2,740 mark, and further losses might push the price down to $2,650 in the near term. Featured image from Unsplash, Chart from TradingView
Recently, renowned trader Peter Brandt voiced criticism directed squarely at Ethereum (ETH), the second-largest crypto by market capitalization, denouncing it as a “junk coin” in a blunt assessment. Ethereum Faces Criticism Celebrated for his insights into financial markets, Peter Brandt spared no punches as he castigated Ethereum, arguing that it lacks the essential characteristics required […]