Ethereum’s progress seems to have absolutely stalled as the king of altcoins has failed to recuperate its losses from the first quarter of the year.
Edging around $3k, ETH was still doing better until the end of April, right after which the altcoin lost extremely crucial support that could have helped it bounce back towards $3,200.
This level is the 23.6% Fibonacci level which coincides at $2,815, which ETH was testing 48 hours ago but failed to close above it. The 8.4% decline that followed left the price trading at $2,686 as of press time.
Ethereum Price Action | Source: TradingView – AMBCrypto
But from here on, the important question is,
The reason why this matters is that that date holds the biggest expiry of the second quarter, with over 618.3k open contracts looking to cash profits. Now, most of the open contracts set to expire on this day are poised for a rally.
Ethereum options expiry | Source: Skew- AMBCrypto
About 67% or 420k contracts are bullish bets using calls, and the Open Interest by Strike indicates that there is a high demand for the price to reach either $4k or $5k.
Ethereum Open Interest by Strike | Source: Skew- AMBCrypto
Even though 140k contracts are calling for $10k as well, but the likelihood of that happening is pretty low. However, ETH still does have an opportunity to reach $4k or $5k, provided there is support from the market.
Firstly for Ethereum to reach $4k from its current trading price, the altcoin will have to rise by 49.19%, and for the same to happen for $5k, ETH needs to mark a 86% rally in the next 48 days.
Now the reason why either of these is possible is that the same has happened before as well.
Ethereum’s possibility of jumping to $4k and $5k | Source: TradingView – AMBCrypto
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