Crypto analysis

Crypto analysis: ETH current data showing possibility of bullish trend

September 25, 2024

Crypto chart analysis (Ethereum):

The current options data shows a possible bullish trend for Ethereum. The shift in the market sentiment from puts (options to sell) to calls (options to buy) suggests that traders are expecting prices to go up.

Ethereum chart analysis

Ethereum (ETH) was trading at about $2,602 on Wednesday, showing a slight drop of 0.9% for the day. Ethereum faced liquidations amounting to $19.67 million over last 24 hours. However, ETH has seen $25.3 million in liquidations in recent times. This total includes $13.88 million from long positions and $5.79 million from short positions, indicating that traders who bet on both price increases and decreases faced losses.

Looking at the 4-hour chart, Ethereum is moving within important price boundaries. Recently, it bounced off a support level at $2,595. If this support remains strong, Ethereum could see an upward rally, potentially reaching the $2,817 level again. However, for this bullish trend to be confirmed, Ethereum needs to break through a key resistance level at $2,707, which it struggled with on Monday.

Analysts from QCP Capital have pointed out that the current options data shows a possible bullish trend for Ethereum. The shift in the market sentiment from puts (options to sell) to calls (options to buy) suggests that traders are expecting prices to go up. Additionally, the implied volatility for Ethereum is 9% higher than that of Bitcoin, indicating a higher chance of price swings and potential gains.

Technical indicators like the Relative Strength Index (RSI) and the Stochastic Oscillator on the 4-hour chart are both above their neutral levels. This suggests that there is prevailing bullish pressure on Ethereum, making a price increase more likely if the momentum continues.

However, a daily close below the $2,595 support level could change the outlook to a bearish one or lead to a period of price consolidation. In the short term, Ethereum has the potential to rise to $2,671, which could trigger liquidations worth $51.73 million, influencing the market dynamics further.