Despite facing a firm rejection at $280, ETH has been able to continue flashing signs of strength
At the moment, it appears to be highly correlated with Bitcoin as the two assets start another consolidation phase
Analysts are now noting that Ethereum could be in for some trouble despite its overt strength
It’s possible that heavy high time frame resistance could spark a sharp decline
Ethereum and the aggregated cryptocurrency market have been flashing some signs of strength throughout the past few days and weeks.
Yesterday, ETH’s recent rally sparked a buying frenzy amongst investors, which ultimately drove its price as high as $280 before it hit a massive resistance level that slowed its ascent.
The cryptocurrency may continue struggling to break above this level in the near-term. One analyst is noting that it marks the upper boundary to a massive range.
An influx of options trading volume and open interest could also help magnify the size of Ethereum’s next price trend.
If it posts a sustained rejection at $280, a significant decline could be imminent.
Ethereum Stable Following Recent Rejection at $280
At the time of writing, Ethereum is trading down marginally at its current price of $275.
Yesterday, buyers were able to push it as high as $280 before it lost its momentum and began sliding lower.
It is important to keep in mind that this is a historically important level for the cryptocurrency, as it’s just below where it set its yearly highs in February right before the massive selloff.
As Bitcoinist reported yesterday, it also marks the upper boundary of a long-held trading range.
One analyst cited within the report explained that a rejection here could cause the crypto to see a massive decline.
“ETH: Should’ve played the range again like I did the first two times instead of getting fancy. In all honestly, probably time to play the range again,” the analyst noted.
Image Courtesy of DonAlt. Chart via TradingView.
Rising ETH Options Market Activity May Magnify the Size of the Next Movement
Deribit – the largest cryptocurrency options platform – explained in a recent tweet that the Ethereum options market is seeing a surge in activity.
They note that there is currently a total OI of $241m, of which $225m is held on their platform. The 24-hour volume also peaked yesterday at $49m.
“We have a new record high for ETH Options volume and open interest! With a peak 24hr volume of $49 million, the Deribit ETH options OI sits at [$225 million] (and currently 93% of the global Ethereum market share)!
The Ethereum options market’s growth may help to fuel the next big movement seen by ETH.
Featured image from Unsplash.
Charts and pricing data via TradingView.