Ethereum’s price has seen a notable rise over the past three days as buyers experienced a surge in demand around the $1,600 dip. As a result, ETH’s price broke above multiple resistance levels in just a few hours and is now aiming to reach the long-awaited bullish target of $2K. Amid this, ETH price is showing small profit bookings among short-term traders, causing a mood swing near the resistance level.
Ethereum flashes bullish options data
Based on information from Coinglass, Ethereum’s Open Interest (OI) has seen a significant increase today, up by $230 million. This indicates growing interest among traders in ETH due to its price volatility, amplifying current price movements below $1,700.
Additionally, there has been a major short liquidation for ETH in the last 24 hours, with over $21 million worth of short positions being liquidated. This has further weakened ETH’s immediate support levels, leading to increased buying interest at current price levels.
Deribit’s options data for September 30 offers a positive outlook. The data shows a significant increase in the number of call options within the $1,675-$1,700 range. Moreover, a put/call ratio of 0.69 suggests that bullish traders are actively preparing for a possible rise to $1,700.
Total open interest is recorded at 18,402, with a notional value of $30.1 million. Should Ethereum maintain its position around the “max pain” price of $1,650, we could see further upward movement in the coming hours. A look at the 24-hour trading analysis indicates that call holders are in a dominant position, indicating bullish momentum.
In the past 24 hours, 33.5% of positions consisted of call options, while put options made up almost half of these, at 18.9%. This data is creating buying sentiment among traders and large investors, especially as Ethereum’s price remains below $1,700.
What’s next for the ETH price?
Ether appears to be on the road to recovery as buyers register huge gains on the price chart. However, ETH price is struggling to maintain these gains as sellers exert pressure near USD 1,687. At the time of writing, ETH price is trading at $1,671, up over 1.3% from yesterday’s price.
The RSI indicator has moved towards overbought territory, raising concerns of a downward correction for Ethereum from its resistance levels. If buyers can hold the price above the 20-day EMA, ETH price could initially target the $1,750 resistance level. A breakout and close above $1,750 will prompt ETH price to test its resistance at $1,880.
On the other hand, if the price falls below the 20-day EMA, it means that the bears have the upper hand. In such a scenario, sellers could try to push the price down past the crucial USD 1,530 support level. If this happens, the price could drop to $1,470.
