Ethereum Aims For $2K Despite Massive Volatility! Here’s What Waiting For ETH Price Next
The crypto market has witnessed extreme turbulence today, experiencing massive liquidation and accumulation in the global market cap. Though Ethereum was preparing for a breakout today, a recent market plunge removed its bullish sentiments. Following Bitcoin’s abrupt drop, Ethereum’s price also experienced a wave of panic selling spurred by false notifications from blockchain analytics company Arkham Intelligence. Their tweet claimed that Bitcoin wallets connected to the U.S. government and the Mt. Gox hack has become active once again.
Ethereum Options Market Shows Negative Sentiment
A fortnight following Ethereum’s Shapella upgrade, the cryptocurrency options market is indicating a heightened perception of downside volatility for the smart contract blockchain’s native token, Ether (ETH), compared to the market leader, Bitcoin (BTC).
At present, options linked to Ether and Bitcoin indicate a preference for puts or bearish wagers that provide buyers with protection against price declines. However, the demand for puts in the Ethereum market is more pronounced than in the Bitcoin market.
Ether’s one-month bearish out-of-the-money (OTM) puts carry a five-volatility-point premium over bullish OTM calls, while Bitcoin’s OTM puts hold a three-point premium over calls, as per the options 25-delta risk reversal data monitored by crypto derivatives analytics company Block Scholes.
The research analyst at Block Scholes, Andrew Melville, mentioned that the risk reversal skew of ETH has now reversed its post-Shapella recovery in comparison to BTC options, with OTM puts priced at a 5 vol premium to calls at a 1-month tenor. He also indicated that this reflects a comeback to the somewhat more negative sentiment attributed to ETH, which has been a recurring observation throughout the year.
ETH Price Moves Near $2K Despite Bearish Pressure
Ethereum’s price experienced several fluctuations originating from the $1,818 support area. Initially, ETH surged past the $1,900 resistance but encountered significant selling pressure around $1,940, prompting a downturn.
This resulted in a steep 10% decline below $1,900, mirroring Bitcoin’s drop from $30,000. The price then revisited the primary $1,850 support zone, establishing a low near $1,785. Currently, the price is on the rise once more, trading above $1,850 and the 100-hourly Moving Average.
Ether is now trading above the 61.8% Fibonacci retracement level, which corresponds to the recent drop from the $1,960 swing high to the $1,785 low. Immediate resistance can be found close to the $1,915-$1,950 area.
As of writing, ETH’s price is trading at $1,884, declining over 3.5% in the last 24 hours. On the downside, initial support is close to the $1,870 level. Following that, the next significant support is around the $1,842 area, below which the ETH price could potentially retest the $1,800 support zone.
However, ETH is predicted to climb from $1,860 as the RSI level is trading in a healthy region. A breakout above $1,950 will clear the road to $2K for Ethereum.
