As of this morning’s session, ETH has gained 1.6% and trades at $4,583. Ethereum started the day on a mixed note. It fell to a $4.75K low then bounced high to $4.63K.
After ETH rose far higher than the first major support range of $4.42K, it attempted to surge past the first crucial resistance range of $4.64K. But it couldn’t sustain it and quickly dipped back below the $4.6K range. The most critical play in the morning session was that ETH could avoid declining towards the $4.53K levels.
ETH Price Action 1-Hour Chart. Source: TradingView
The Afternoon Session
ETH would need various support levels before it can smash through the $4.6K resistance levels. ETH has fallen back to the $4.5K range, and with that, it has brought into play a test of its first crucial resistance level of $4.6K. However, a significant breakout is required for ETH to smash past its first and second critical resistance levels (the $4.6K and $4.73K ranges) and possibly, test its peak price of $4.87K.
ETH would only dip below the $4.3K range with an extended sell-off ahead of the evening session. Even if ETH declines towards the $4.3K levels, it can’t dip further than $4.328K because that range is its second crucial support region.
The EMA Analysis
The EMAs are also worth analysing apart from the support and resistance levels. As of this morning session, the 50 EMA has maintained a huge gap between itself and the 100/200 EMAs. Even a marginal distance between the 100 EMA and 200 EMA is proof of additional support. If this gap between the EMAs mentioned above keeps widening, the $4.8K levels will come into play.
Unfortunately, the most crucial factor which would have moved ETH price over the $4.65K range and onwards to $4.8K didn’t happen. As of this writing, ETH trades at about $4.48K. Its 24-hour trading volume has dropped by more than 23%, but many traders still trade about $19.5B worth of ETH daily.
ETH Options Are Still At ATH
Open interest in ETH is currently at an ATH, and it’s presently valued at $7.5B.
When the current ETH contract expires on the last day of this month and year, about 700K options is estimated to be issued at a put/call ratio of 0.48 at an estimated price of $2.5K. Veteran Chinese crypto journalist, Collins Wu, revealed via Twitter that “the number of call options with an exercise price of $5K is the highest.”
Rising interest in ETH options as the year winds down is now a common recurrence for ETH. This rising interest usually happens at this period because there is increased volatility on the ETH market with traders trying to hedge their positions.
The bounce of ETH between short and long-term bullishness indicates that the call option is the persisting market sentiment. Some traders remain convinced that ETH price will surge to $5K soon and are already positioning their traders for when this happens.