Ethereum is ready to rally after it was closely tracking the Bitcoin price throughout the past several days and weeks which exposed it to a huge downwards pressure yesterday as we are reading further in the Ethereum news.
It was also able to post a swift recovery from the daily lows and remained within the long-held consolidation phase within the $230 and $250 range and it now it seems that Ethereum is ready to rally again. It did outperform Bitcoin slightly at the moment but ETH remains closely correlated with the number one cryptocurrency and where it goes next will depend on how Bitcoin will react to the newly formed resistance around $9,700.
The analysts explained that ETH was able to defend itself against a sustained dip below the key support level which could bolster how it trades in the hours and days ahead. Another important factor that could play into how the trends will form in the upcoming hours, is the huge rise in options trading volume that Ethereum went through as of late. These options contracts could even bring more volatility in the future. At the time of writing, Ethereum was trading up marginally at a current price of $235.
The cryptocurrency is up from the daily lows of $230 although it still has a long way to go before reaching the multi-day high of $250. The visit to these highs for Ethereum to lose its stability as the rejection faced a huge selloff that caused it to plunge. This price turbulence came about in tandem with BTC’s volatility right when the benchmark cryptocurrency rallied to a new high of $10,050 before facing a strong selloff that sent it down to a new low of $9,000. ETH’s correlation with Bitcoin remains strong as the asset rebounded overnight alongside bitcoin.
Analysts are claiming that Ethereum recaptured a new key support level against Bitcoin and its USD trading pair which led one analyst to note that it doesn’t really look as bad. Whether or not it manages to hold above this level, ETH depends on whether Bitcoin can stabilize within the mid $9,000 region. Ethereum’s price could also see volatility in the near future because of the heightened options trading activity. Arcane Research explained:
“The Open Interest is now approx. $150 million, an all-time high. Much higher than the previous high around $90 million from last summer.”
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