Ethereum passed $4,200 earlier today, which is a gain of 7.3% from Wednesday, the biggest since October 1. According to the price chart, the path of least resistance is to the higher side, and record highs could soon come into play, Coindesk reports. Ethereum has broken the bearish trendline connecting May and September peaks convincingly. Earlier this month, Bitcoin overcame similar resistance, reaching the new record high of over $66,000.
Little resistance to ATH for Ether
Ethereum peaked at $4,379 in May. Now, it looks like there’s little resistance until then. The options market is also showing a bullish trend. Investors are purchasing higher strike or out-of-the-money (long-dated) call options in anticipation of US watchdogs’ approving an exchange-traded fund (ETF) tied to ether-based futures contracts shortly. This is the main reason Ethereum is going bullish.
Strong purchase activity on ether calls expiring next spring
According to data from QCP Capital, a trading firm based in Singapore, strong purchase activity was captured on ether’s $15,000 calls, which expire on March 25, 2022. Surprisingly, current spot prices are quite different given the surges explained above. Bitcoin is on its way to passing $67,000.
QCP Capital wrote in its Telegram channel on Tuesday:
Markets’ long-term attention seems to be shifting from BTC to ETH with potential ETH ETF release after BTC [ETF in the U.S.], coupled with ETH 2.0 catalyst.
According to data from Deribit, a crypto derivatives exchange, call options with a strike price at $15,000 have the highest open interest for all options expiring in March 2022. Chart pattern analysis indicates that Ethereum, Tezos, Polkadot, and Binance Coin are all about to break outs, strategists at Fundstrat stated in a report published on Wednesday.
Bitcoin with new all-time high
Bitcoin almost reached $67,000 on Wednesday, then dropped below $65,000 at 7:15 a.m. GMT this morning. As speculators take profit, the question is whether the infamously volatile digital asset will give in to incessant selling or keep marching on. If it begins to decline as everyone sells, it will affect the whole crypto market. The market dropped to $1.3 trillion around the middle of 2021 after a collapse.
Bullish sentiment prevails
For now, bullish sentiment is prevalent. Crypto derivatives exchange Delta Exchange CEO Pankaj Balani stated he expected Bitcoin to outdo all other cryptos, predicting that the largest cryptocurrency by market cap would pass $100,000 before the end of the year, which we here doubt sincerely.
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