The post What Ethereum’s rising demand says about ETH’s price action appeared on BitcoinEthereumNews.com.

Demand for ETH grew as put-to-call ratios declined ETH’s price action remained stagnant as prices fluctuated Ethereum [ETH] has remained stagnant around the $3500-mark for quite some time now. Despite its sideways movement, however, bullish sentiment around ETH has been growing. Ethereum demand surges According to recent data, 200,000 Ethereum options contracts recently expired, and the data surrounding this event hinted at a surge of bullish sentiment in the Ethereum market. The Put-Call Ratio, a key indicator of market bias, sat at a low 0.36 at press time. This means there has been significantly less buying of put options compared to call options – A sign that most options traders anticipate Ethereum’s price to rise. Further adding to the optimism is the maximum pain point of $3,600. This price level signifies the point where most options contracts expire worthless. If Ethereum surpasses $3,600 at expiry, most call options will be profitable, again reflecting a bullish bias. Finally, low implied volatility (IV) below 60% across all short-term ETH options contracts further fueled the bullish outlook. Here, implied volatility reflects expected price movement, and lower IV suggests investors anticipate Ethereum’s price to remain stable or hike in the near term. Source: X Looking at the price movement At press time, ETH was trading at $3,512.52. While the price of ETH has appreciated significantly after 20 May, as time went on, the bullish sentiment around ETH depleted itself. In fact, as the altcoin’s price fell again after 27 May, its market trend reversed itself too. If bearish sentiment persists, the price of ETH could go down to the $3,000-level. The CMF (Chaikin Money Flow) for ETH fell significantly during this period as well. This indicated that the money flow for ETH fell materially. The RSI (Relative Strength Index) for ETH was also relatively…

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Filed under: News - @ June 16, 2024 9:20 am