The price of Ether (ETH), the native cryptocurrency of the Ethereum blockchain network, hit a new all-time high today at $ 1,500. Data suggests that the ETH options market has had dominant call activity and this may be a major factor behind the rally to a new high.
On the major exchanges, the price of ETH was over USD 1,500 after the options market had dominant call activity.
There are two types of contracts in the options market: puts and calls. Puts are sell orders and calls are buy orders. When there are more calls in the market it means that the options market is bullish.
ETH / USDT 15-minute chart (Binance). Source: TradingView.com
The options market was dominated by calls prior to the rally
Before rallying to a new all-time high, analysts at Laevitas, a data analysis platform, said 80% of Deribit’s volume of ETH was dominated by calls.
Because of this volume trend, the analysts forecast a major rally for ETH. They said:
“#ETH 1-month VIX has returned to the level last reached in early January, while the price has stabilized near ATH. 80% of today’s @ DeribitExchange volume is dominated by calls. It looks like it’s about to burst. “
In a matter of hours, ETH rose to over $ 1,500 and hit a new all-time high for the second time in a month.
ETH had flirted with the all-time high for the past week, but every time it approached the resistance, the price turned down the closest underlying support.
The fact that the price did not see a deep decline after retesting the previous record high meant that resistance was weakening. Therefore, on his fourth retest, the resistance level was exceeded.
As Su Zhu, CEO of Three Arrows Capital said, Ether’s momentum was so strong that if an investor had sold BTC to ETH at a high of $ 41,000, the investor would have sold more than just the US dollar. He said:
“Crazy thought, but you would have done more of selling $ BTC to $ ETH than BTC to USD at the local 41k tip. Crypto / crypto if you want to play cycles. Crypto / Fiat only. “
What’s next for Ethereum?
Traders say that when the daily ether candle closes above $ 1,440 it would cement an uptrend. A pseudonymous trader named “Trader Koz” said:
“Daily closing price above $ 1,440 confirms the low in my opinion. There’s still time for this to be turned down so I’m trying to hold off the full blown party until later. “
The IntoTheBlock researchers shared a similar sentiment. After Ether broke $ 1,500 for the first time in history, researchers said activity in the chain reverted to January 2018 numbers.
“ETH breaks the $ 1,500 mark for the first time and goes into pricing. And to celebrate ATH, here are some facts: – 100% addresses profitability – Transactional activity in the chain through January 2018 (average 1, 16 million daily) – 52.38 million addresses with ETH (ATH) “
