Why 30% of traders expect Ethereum to cross $2k before March?
The past 24 hours were particularly rough for the collective cryptocurrency industry; a short-term correction saw assets declining in the charts. Ethereum dropped down to as low at $1732. While the market managed to recover at press time, there was a looming concern that the bearish drag was not over.
Ethereum might be receiving a bullish push from the derivatives side of the market, as trades indicated a bullish sentiment till the end of February.
ETH Realized Volatility >Implied Volatility since 29th Nov-2020
According to Skew charts, Ethereum’s realized volatility indicated a positive above Implied Volatility for the first time since November 29th, 2020. Realized Vol surpassing Implied Vol suggested that Ether’s market is currently more volatile than expected. Such a situation may or may not favor Ethereum’s spot prices but other factors indicated an overall positive sentiment.
As observed in the above chart, Open-Interest on Ethereum Options across multiple platforms remained close to its all-time high activity with Deribit exhibiting its ATH at press time. Rising OI indicated current value of ETH contracts active in the space, and a higher OI can always lead to more price appreciation in a bullish trend.
30% of the market expects Ethereum to cross $2k
According to the Probability of Ethereum, close to 30% of the investors expect the price to climb above $2000 before the end of February. The trend can be further confirmed by the fact that ETH Options volumes were dominated with Call Options at press time. According to data, 3494 Deribit ETH expected the price to toppled $2240 by 26th February.
Therefore, positive sentiment in the market may possibly push Ethereum back above its immediate resistance of $1820 over the next few hours, in order to re-gain dominant bullish momentum.