The intense uptrend of Ethereum is the main reason why the crypto was able to gain what seems to be a strong foothold within the $270 region. Various analysts are now saying it is possible for Ethereum to see a sharp decline. It could be in for some trouble despite its overt strength.
Though Ethereum faced a strong rejection at $280, the cryptocurrency has been able to continue showing some signs of strength. As of the moment, it seems to be highly correlated with Bitcoin. Moreover, the two assets are beginning to enter another consolidation phase.
There is a strong chance that the heavy time frame resistance could activate a sharp decline.
ETH’s Buying Frenzy
Throughout the past few days and weeks, Ethereum, along with the aggregated cryptocurrency market has been showing some signs of life.
Recently, Ethereum experienced a rally and it caused a buying frenzy amongst investors yesterday. It ultimately pushed its price as high as $280 before hitting a massive resistance level which slowed its ascent.
In the near-term, Ethereum may continue struggling to go above this level. A certain analyst is saying that it marks the upper boundary to a massive range.
If there is an influx of open interest and options trading volume, it could also certainly help magnify the sie of Ethereum’s next price trend.
If Ethereum posts a sustained rejection at $280, a significant decline could be inevitable.
Ethereum Stable, Following Recent Rejection at $280
As of the moment, Ethereum is trading down marginally at the current price, $275. Yesterday, the buyers were able to drive it as high as $280 before losing its momentum and starting to slide lower.
It is of significance to note and to remember that this is a historically important level for Ethereum. Why? Because it is just below where it set its yearly highs in February right before the massive selloff. Furthermore, it also marks the upper boundary of a long-held trading range.
A certain analyst said that a rejection here could lead the crypto to a massive decline.
Rising ETH Options Market Activity May Magnify the Size of the Next Movement
In a recent tweet, Deribit, the largest cryptocurrency options platform, explained that the Ethereum options market is experiencing a surge in the activity.
They reported that currently, there is a total OI of $241m and that $225m is held on their platform. Yesterday, the 24-hour volume also peaked.
It is possible that the Ethereum options market’s further growth may help to fuel the next big movement seen by ETH.