Ethereum price has been making a notable surge over the last three days as buyers made a surge in demand near the dip of $1,600. As a result, ETH’s price broke above multiple resistance levels in just a few hours and is now aiming to reach its much-anticipated bullish goal of $2K. Amid this, the ETH price is showing minor profit-booking among short-term traders, creating a change in mood near the resistance level.
Ethereum Flashes Bullish Option Data
Based on information from Coinglass, Ethereum’s Open Interest (OI) has seen a significant increase today, rising by $230 million. This indicates a growing interest among traders in ETH due to its price volatility, strengthening its current price movements below $1,700.
Additionally, there has been a large short liquidation for ETH in the past 24 hours, with over $21 million in short positions being liquidated. This has further weakened ETH’s immediate support levels, leading to increased buying interest at its current price point.
Deribit’s options data for 30 September presents a positive outlook. The data reveals a significant increase in call options within the $1,675-$1,700 bracket. Furthermore, a put/call ratio of 0.69 suggests that bullish traders are actively preparing for a potential rise to $1,700.
The total open interest is recorded at 18,402, carrying a notional value of $30.1 million. Should Ethereum maintain its position around the “max pain” price of $1,650, we might see further upward movement in the upcoming hours. A look at the 24-hour trading analysis indicates that call holders are in a dominant position, hinting at a bullish momentum.
In the last 24 hours, 33.5% of the positions were call options, whereas put options made up nearly half of that, standing at 18.9%. This data brings a buying sentiment among traders and major investors, especially as Ethereum’s price holds below the $1,700 mark.
What’s Next For ETH Price?
Ether seems to be on the path to recovery as buyers are registering massive gains on the price chart. However, ETH price is struggling to hold these gains as sellers create pressure near $1,687. As of writing, ETH price trades at $1,671, surging over 1.3% from yesterday’s rate.
The RSI indicator has surged toward the overbought region, holding concerns of a downward correction for Ethereum from its resistance levels. If buyers can hold the price above the 20-day EMA, the ETH price might initially target the $1,750 resistance level. A breakout and closure above $1,750 will send the ETH price to test its resistance at $1,880.
On the flip side, if the price drops below the 20-day EMA, it implies that the bears have the upper hand. In such a scenario, sellers might attempt to pull the price down past the crucial support level of $1,530. If this occurs, the price could plummet to $1,470.