In recent weeks, Bitcoin’s price has been able to break past the critical $30K resistance level, pushing several altcoins to remarkable bullish rally. However, ETH price failed to gain significant boost from BTC’s rally and continued to consolidate near the $1.9K region. Moreover, the rising ETH gas fees and scaling issues have been a hurdle to its upward price trajectory, causing investors to shift attention to other potential altcoins.
ETH Holders Are Jumping Into Bitcoin’s Rally
Both Bitcoin and Ethereum have been trading above their respective max pain points. This typically indicates a bullish market sentiment as the price of these assets exceed the level where option holders (both calls and puts) would experience maximum financial losses. However, despite this ostensibly favorable condition, Ethereum fails to trigger any promising surge compared to Bitcoin.
The price weakness observed in Ethereum has prompted a significant number of market makers to continue offloading their ETH call options, suggesting a lack of confidence in Ethereum’s near-term price potential. This sell-off in ETH call options is contributing to the overall selling pressure Ethereum is currently facing.
Additionally, the widely monitored trading pair in the crypto market, Ethereum/Bitcoin (ETHBTC), just concluded trading at a low unseen in the last 300 days.
Even though both Bitcoin and Ethereum have seen substantial upward shifts in recent trading sessions, Bitcoin’s sudden surge in dominance and increased strength compared to Ether has led ETHBTC to a multi-month low. This has resulted in a bearish environment for Ethereum’s price.
What To Expect From ETH Price Next?
Ethereum has been demonstrating a narrow trading pattern, fluctuating between $1,930 and $1,840 over recent days. This indicates a level of uncertainty between the market’s bullish and bearish forces. As of writing, ETH price trades at $1,894, surging by nearly 1% from yesterday’s rate.
Signals such as the upward trajectory of the 20-day EMA at $1,878 and the RSI remaining in positive territory suggest that the bulls hold a slight advantage. If the buyers can push the price beyond $1,940, the ETH price may ascend toward the significant psychological threshold of $2,000. This milestone could pose a challenge, but it’s likely that it will be surpassed, potentially sending the price skyrocketing toward $2,148.
Conversely, if the bears aim to stifle this potential rally, they’ll need to drag the price beneath the $1,846 support level. If this happens, the ETH price could potentially tumble below the EMA200 trend line on the 4-hour price chart, a crucial point to monitor closely. If this support level is breached, we might see the price further descend toward the $1,700 mark.
