with an average value of 1.2 billion dollars on July 29, 2022. Ethereum options are running out. Options will expire with a maximum price of $1,400, leaving investors in a difficult position. According to the published data, the current put/call ratio stands at 0.67, with most derivatives traders betting that the Ethereum price will increase. However, the resulting maximum low revealed that a drop in ETH price could come in the coming days.
Ethereum Price Boosts Bearish Signals
While most options remain open around $1,400, many Ethereum bulls and bears are aiming for Ethereum price to fall further and the reversal rally that started a few weeks ago to end. While some traders are using options to hedge their spot positions, Ethereum’s bullish scenario remains questionable given the technical resistance and lack of entry it faces on the weekly timeframe.
Koinfinans.com As we reported, the volume of top orders on the chart indicates that a large part of the bulls could see Ethereum reaching $1,500. The fact that the volume of orders above this level is quite low means that the price increase in the short term does not deceive investors. As a result, traders also kept the order rather low to the $2,000 highs.
According to the technical indicators on the chart, cryptocurrencyis struggling to sustain an Ethereum rally as it failed to break the 200-week moving average, which acts as the main hurdle for bearish assets.
Besides facing an extremely strong resistance level on a long-term chart, Ethereum showed a “dangerous” candlestick chart called the “hanging man”. This pattern usually appears at the top of any short or medium term rally and indicates that the purchasing power is no longer available and the price of the asset will reverse.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.