Ethereum Posts Clear Breakout as Investors Eye Price Discovery
- Ethereum has seen some strong momentum throughout the past few days, with buyers taking control as its price now hovers firmly above $1,400
- The selling pressure in this price region has been dissipating with each visit, signaling that bulls could be on the cusp of sparking a breakout rally
- Where the market trends in the mid-term will undoubtedly depend on whether or not bulls can maintain the crypto above $1,400
- A break below this level would mark yet another rejection in the crypto’s all-time high region, potentially spelling trouble for where it trends next
- One analyst said that options activity seemed to spike just before ETH made a push to fresh all-time highs of $1,500
Ethereum and the entire crypto market have been caught within the throes of some immense volatility throughout the past few days and weeks, with buyers and sellers both struggling to gain any control over the market.
This can largely be blamed on Bitcoin, which has been caught within a consolidation trend as of late.
Ethereum could be gearing up for price discovery once bulls can firmly shatter its all-time highs, but bulls first need to clear $1,500.
Ethereum Shows Signs of Strength Despite Another Rejection
At the time of writing, Ethereum is trading up over 8% at its current price of $1,485, which marks a notable rally from its recent lows of $1,260 that were set just a few days back.
The crypto’s latest price surge allowed it to gain some ground against Bitcoin, but its price remains generally correlated to the benchmark cryptocurrency.
Unless it rejects violently around its current price levels and drifts below $1,400 again, it does seem as though it may be coiling up for another move higher.
Analyst: ETH Options Activity Surged Right Before Latest Pump
This highlights the growing impact that options are having on the market.
“Hours before ETH hit a new all-time high, the options market was showing dominant call activity. Options market is now about 1/4 of futures market open interest for Bitcoin. Watch out for options, it has a big impact on markets.”
The coming few days should shine a light on whether the overnight move higher will be sustainable or if it will result in another swift move lower.
Featured image from Unsplash. Charts from TradingView.