Options Data Predicts $560 Ethereum Price Rally Not Possible –
Options data predicts that Ethereum price rally to $560 is not possible. Options data like pro traders are not optimistic that Ethereum price will follow Bitcoin’s trend to new 2020 highs.
This week, Bitcoin (BTC) and Ether (ETH) prices reached new highs as a slew of bullish news continued to pump investors’ hope that the next crypto-bull market will mirror the one seen in 2017.
Many novice traders simply follow spot prices on the major crypto exchanges to gauge the direction price might take. However, reviewing options markets data can provide additional relevant insights on market sentiment.
Looking at the most recent activity in Bitcoin options, it is clear that some trades occurred on strikes that seemed improbable even for the most bullish analysts. These trades include 20 BTC CME December call options with a $70,000 strike and the 56 BTC worth of $100,000 December strikes at LedgerX.
These anecdotal trades might not reflect the broader market conditions, but oddly enough, the highest Ether options contract for December 2020 stands at $1,120. This trade is undoubtedly bullish considering there are only 42 days left until expiry, but not even close to the BTC options pending 330% upside or higher.
It is worth noting that Deribit also holds Ether call options for March 2021, with strikes trading up to $1,600. Although this effect might have been caused by the Ethereum 2.0 launch date on Dec. 1, its upside stands at 230%. This is considerably lower than Bitcoin’s options.
As the data above shows, out of the $613 million in Ether options open interest, a mere 28% stands at $460 and higher. This situation can be partially explained by the 23% rally that occurred over the past 10 days, indicating that traders were not expecting these prices.
It’s also important to remember that options until March 2021 are listed on most exchanges. Therefore, some optimism ought to be expected for the more distant dates. Buying options for prices way above the market level is relatively cheap. The $600 ETH call option for January 2021 was trading at $12 just two weeks ago.
When comparing this data to the Bitcoin options markets, there’s a striking difference. BTC options are remarkably more bullish, and there are $50K call options that were placed long ago for June and December 2021.
Take notice how, unlike Ether markets, there are some massive bets above $17,000. This time around, 40% out of the $3.75 billion BTC options open interest stands at $16,000 and above.
Bitcoin price has increased by 18.5% over the past 10 days, so these optimistic bets would have seemed even more unrealistic back then. Thus, the recent ETH rally shouldn’t be an excuse for the lack of over-optimistic option trades.
Consequently, one can only conclude that Ether traders were not as bullish as Bitcoin traders. Investors may infer that this is a good thing, as unrealistic expectations might frustrate investors.
Nevertheless, Ether investors’ lack of appetite in willing to bet $17 for a 25% bull run until Dec. 25 is telling.
This article is sourced from:https://cointelegraph.com
Author: Comfort Obe
CRYPTO NEWS: Latest BITCOIN News, ETHEREUM News, DEFI News, RIPPLE News
According to the November 9 announcement, the Romanian subsidiary of KPMG is committed to leveraging the Aurachain development platform to build fast and simple blockchain-based applications and smart contracts for its customers.
The funding was led by Blockchain Capital, according to the firm’s November 10 statement. IDEO Colab Ventures, Coinbase Ventures, Industry Ventures and Foundry Group also took part in the round, according to the announcement. Spencer Bogart of Blockchain Capital also joined the firm’s board of directors.
The decline in Bitcoin hashrate over the past few weeks has been seasonal and coincided with the end of the rainy season in China, where most of the mining takes place. This caused a 38% drop in the hash rate as fewer computers were used for the next block. According to bitinfocharts.com, the hash rate has just hit 138 EH / s, up 40% from the low reached at the end of last month.
According to Defi Pulse, that milestone comes when TVL for all DeFi protocols hits an all-time high of $ 13 billion. So far this month, more than $ 2 billion has been added to the DeFi protocols in terms of cryptocurrency dollar backing, but some of this may be related to the rise in Ethereum prices.
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Ethereum Dips Towards $440 Remain Attractive To The Bulls
Ethereum Dips Towards $440 Remain Attractive To The Bulls
Ethereum traded above the $450 resistance, but it is struggle near $480 against the US Dollar. ETH price is correcting gains, but it is likely to find strong bids near $440.
This past week, bitcoin and ethereum performed really well above $16,000 and $450 respectively against the US Dollar. ETH price even broke the $465 resistance and settled well above the 100 simple moving average (4-hours).
It traded to a new multi-month high near $478 and recently started a downside correction. There was a break below the 23.6% Fib retracement level of the upward wave from the $425 swing low to $478 high. Moreover, there was a break below a key bullish trend line with support near $460 on the 4-hours chart of ETH/USD.
Source: ETHUSD on TradingView.com
Ether price is now holding the key $455 support zone. The 50% Fib retracement level of the upward wave from the $425 swing low to $478 high is also near the $461 level.
If there is a downside break below the $451 and $450 support levels, the price could correct further lower. The next major support is near the $440 level since it is close to the 100 simple moving average (4-hours). Any further losses could lead the price towards the $425 swing low.
If Ethereum stays above the $450 support or the 100 SMA, there are high chances of a fresh increase. An initial resistance on the upside is near the $465 level.
The first major resistance sits at $470, above which the price is likely to aim a break above the $478 high. In the stated case, the price is likely to accelerate higher towards the $495 and $500 resistance levels in the near term.
4 hours MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone.
4 hours RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $450
Major Resistance Level – $465
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