- Ethereum has seen strong momentum in the past few days, with buyers taking control as the price is now firmly above $ 1,400
- Selling pressure in this price region has eased with each visit, suggesting bulls may be on the verge of sparking a breakout rally
- Where the market trends will be in the medium term will undoubtedly depend on whether or not bulls can keep the crypto above $ 1,400
- A break below this level would spell further rejection in the all-time high region of crypto, and potentially cause problems with the development of the next trend
- One analyst said options activity appeared to be picking up just before ETH hit new highs of $ 1,500
Ethereum and the entire crypto market have seen immense volatility in the past few days and weeks, and both buyers and sellers have struggled to gain control of the market.
This is largely due to Bitcoin, which has been caught in a consolidation trend recently.
Ethereum could prepare for pricing once the bulls can firmly break their all-time highs, but the bulls have to settle at $ 1,500 first.
Ethereum is showing signs of strength despite another rejection
At the time of writing, Ethereum is trading over 8% at its current price of $ 1,485. This is a remarkable rally from the recent lows of $ 1,260 set a few days ago.
The crypto’s recent surge in price allowed it to gain some ground versus Bitcoin, but its price generally continues to correlate with the benchmark cryptocurrency.
Unless it forcibly rejects its current price level and falls back below $ 1,400, it seems like it is teaming up for another spike.
Analyst: ETH options activity increased just before the last pump
An analyst noted that options trading activity for Ethereum rose sharply this morning ahead of the ETH rally.
This underscores the growing impact options are having on the market.
“Hours before ETH hit a new all-time high, the options market showed dominant call activity. The options market now accounts for about 1/4 of the open futures market for Bitcoin. Look for options that have a big impact on the markets. “
The coming days should shed some light on whether the higher movement overnight is sustained or whether it will result in another rapid downward movement.
Featured image from Unsplash. TradingView charts.