While Bitcoin continues to fall, the whole crypto market follows, and Ethereum doesn’t escape it. Currently, ETH is trying not to lose a key support, just days before the expiration of Ethereum options, which are worth $122 million.
At the time of this writing, ETH is trading at $379.73 per unit.
Will the 2nd largest kryptonie be on the verge of heavy losses? Here is a situational analysis with the intention of forecasting the near future.
Ethereum option market grows like foam
In the last 3 months, the open interest in ETH options has grown from $77 million to $417 million currently, which means it has multiplied by 5. However, despite the fact that it is a much smaller size than the Bitcoin market, this growth is really relevant.
Next Friday, August 28, a block of approximately $122 million will expire, which could significantly affect the price of the Ethereum in the short term.
Ethereum block of options nearing expiration leans slightly to the downside
Since Deribit is the Ethereum option provider with the largest market share, it is useful to analyze where the largest number of positions are placed.
As of August 28, the balance is in favor of the sellers, with 27,800 in call options, and 31,400 in put options, located in a range of exercise between $380 and $400 per unit.
Volatility in Ethereum exceeds that of Bitcoin
ETH Technical Analysis
In the weekly time frame we observe how a price correction intention begins, with a candle that has already closed in a bearish way, and one that begins to develop in the same way.
At this point, a reversal of the medium term uptrend, which was able to take ETH to a 2 year high, is totally healthy.
The 8 week EMA and 18 week SMMA moving averages are crossed upwards. These averages may be being sought as dynamic supports.
After ETH managed to break $310, there was no relevant barrier in the weekly chart that will slow the price down to $486. However, at the moment the odds are in favor of a reversal, influenced by Bitcoin.
The mid-term trend will remain upward as long as the $237 support remains intact.