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Here’s the must-have guide to Ethereum bulls




Ethereum price is currently in an interesting juncture. The value of the largest alternative on the market increased 4.27% over the past week. When the alt price managed to break above $ 3,300 a couple of days ago, the Ethereum community became quite ecstatic.

However, its 24-hour price drop of 4.28%, in general, canceled out the aforementioned appreciation. In fact, ETH was simply valued at $ 31,683.34 at press time. The next few days will be even more dramatic.

Expiration of the next options

All trading activity in the options market usually has a direct impact on the price of the underlying asset. The Ethereum market is set to witness a massive expiration of options involving 257.5k Ether tokens on August 27. The Put-Call relationship seemed to be fairly level at the time of this writing.

However, a closer look at the breakdown suggests that more calls have been made at the strike price of $ 3k or more. In general, this is a bullish signal. However, it should also be noted that the number of sales contracts dominates the region below $ 3k.

Therefore, if the Ethereum price falls below the aforementioned level, just before expiration on the 27th, the so-called bullish narrative could be reversed.

Source: Skew

How are things right now

Ethereum’s price candles on the 4-hour chart broke below its ascending channel on August 17. However, during the August 21-22 period, it made several attempts to re-enter the channel, but the lower trend line acted as strong resistance and prevented that from happening. Despite that, the alt price managed to gradually pull back and surpassed the $ 3.3k level on the 23rd. However, it was unable to overcome it.




The same levels where ETH had recently been rejected [$ 3314, $ 3377], now they have become strong resistance. Also, at press time, the alt was trading relatively below its moving average. [curva azul], which highlights the presence of a slightly bearish sentiment.

Also, at the time of writing, Glassnode data pointed out that the market was more favorable for short traders. During the last day, the long contracts are worth $ 27 million, it had been liquidated while the value of the short contracts was simply $ 2.7 million.

In addition, the financing rate on exchanges such as OKex was negative. [-0,001%] at press time, intensifying bearish sentiment.

ETH / USDT || Source: TradingView

What to expect

Nonetheless, it should be noted that the $ 3k region offers the alt a fair amount of support. Since the second week of August, the value of ETH has fallen only a couple of times on the 4-hour chart below the resistance level of $ 2950. Ergo, the odds of the price of ETH falling below the same level the next few days appear to be considerably slim compared to the likelihood that its price will maintain the current level.

So, if the ETH valuation turns around $ 3k during the expiration period, the shopping spree can be expected to begin. However, if it does not stay above the level mentioned above, the put option owners could exercise their option to sell their respective ETH tokens.

This is a machine translation of our English version.

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TAMMY SEWELL
Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: Tammy@oicanadian.com Phone: +1 513-209-1700

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