Ethereum has been experiencing a slowdown in its bullish momentum over the weekend. The cryptocurrency managed to break the critical resistance at $1,700 but could re-test previous support levels before reclaiming higher levels.<\/p>\n\n
According to Wu Blockchain, Ethereum recently surpassed Bitcoin in terms of Open Interest (OI) for options contracts. This metric stands at $5.6 billion as opposed to BTC\u2019s $4.3 billion.<\/p>\n
For the first time since the inception of these products, ETH\u2019s price beat BTC\u2019s open interest. As Wu Blockchain noted, most of the OI recorded for Ethereum option contracts are calls (buy) concentrated on September 30 and December 30.<\/p>\n
Source: Glassnode via Wu Blockchain<\/p>\n
Both of these dates are post-merge, a highly expected event for Ethereum. \u201cThe Merge\u201d has been tentatively set for mainnet by September 9th.<\/p>\n
This event will complete ETH migration from a Proof-of-Work (PoW) consensus to a Proof-of-Stake (PoS) consensus. Players in the options market seem to be positioned to the upside or hedging potentially short positions with other investment products.<\/p>\n
ETH\u2019s price moving sideways on the 4-hour chart. Source: ETHUSDT Tradingview
\nA Different Perspective On The Price Of Ethereum<\/p>\n
Data from Material Indicators accurately predicted the short-term selling pressure with the potential for an increase in volatility on yesterday\u2019s essential daily, weekly, and monthly candle close. These events often promote sudden moves in an asset\u2019s price.<\/p>\n
Source: Material Indicators via Twitter<\/p>\n
As seen below, Material Indicators\u2019 Trend Precognition Indicator flashed a short signal at yesterday\u2019s daily close. This suggested that Ethereum had a high chance of trending to the downside.<\/p>\n
This short-term selling pressure coincided with technical resistance at the 100-day moving average (DMA). This level swelled with an increase in asks orders as the price of Ethereum trended to the upside over the past two days.<\/p>\n
At the time of writing, ETH\u2019s price still records $13 million in asks (sell) orders at $1,700. This suggests that this level will continue to operate as critical resistance for the time being.<\/p>\n
This shift in momentum for ETH\u2019s price, as supported by Material Indicator\u2019s trend precognition and asks liquidity, might translate into more persistent downside price action. As seen below, these analysts presented a possible bearish scenario for Ethereum for the coming months.<\/p>\n
The fractal or price forecast below shows ETH\u2019s price might trend downwards until at least October 2022. These models are highly unpredictable but it could provide traders with clarity about the price direction in high time frames.<\/p>\n\n
On the latter, analysts from Material Indicators said the following highlighting how this data provides a different take on the current ETH\u2019s price narrative away from the migration to a PoS consensus:<\/p>\n
I don\u2019t recommend trading fractals or taking them too literally as they can deviate in both price range and time or invalidate anytime. That said\u2026 All of the above elements paint a very compelling story for #ETH based purely on algos and TA without any of the POW (Proof-of-Work) \u2013> POS (Proof-of-Stake) chatter<\/p>\n
ETH\u2019s price forecast for the coming months. Source: Material Indicators via Twitter<\/p>","protected":false},"excerpt":{"rendered":"
<\/p>\n
Ethereum has been experiencing a slowdown in its bullish momentum over the weekend. The cryptocurrency managed to break the critical resistance at $1,700 but could re-test previous support levels before reclaiming higher levels.<\/p>\n
According to Wu Blockchain, Ethereum recently surpassed Bitcoin in terms of Open Interest (OI) for options contracts. This metric stands at $5.6 billion as opposed to BTC\u2019s $4.3 billion.<\/p>\n
For the first time since the inception of these products, ETH\u2019s price beat BTC\u2019s open interest. As Wu Blockchain noted, most of the OI recorded for Ethereum option contracts are calls (buy) concentrated on September 30 and December 30.<\/p>\n
Source: Glassnode via Wu Blockchain<\/p>\n
Both of these dates are post-merge, a highly expected event for Ethereum. \u201cThe Merge\u201d has been tentatively set for mainnet by September 9th.<\/p>\n
This event will complete ETH migration from a Proof-of-Work (PoW) consensus to a Proof-of-Stake (PoS) consensus. Players in the options market seem to be positioned to the upside or hedging potentially short positions with other investment products.<\/p>\n
ETH\u2019s price moving sideways on the 4-hour chart. Source: ETHUSDT Tradingview
\nA Different Perspective On The Price Of Ethereum<\/p>\n
Data from Material Indicators accurately predicted the short-term selling pressure with the potential for an increase in volatility on yesterday\u2019s essential daily, weekly, and monthly candle close. These events often promote sudden moves in an asset\u2019s price.<\/p>\n
Source: Material Indicators via Twitter<\/p>\n
As seen below, Material Indicators\u2019 Trend Precognition Indicator flashed a short signal at yesterday\u2019s daily close. This suggested that Ethereum had a high chance of trending to the downside.<\/p>\n
This short-term selling pressure coincided with technical resistance at the 100-day moving average (DMA). This level swelled with an increase in asks orders as the price of Ethereum trended to the upside over the past two days.<\/p>\n
At the time of writing, ETH\u2019s price still records $13 million in asks (sell) orders at $1,700. This suggests that this level will continue to operate as critical resistance for the time being.<\/p>\n
This shift in momentum for ETH\u2019s price, as supported by Material Indicator\u2019s trend precognition and asks liquidity, might translate into more persistent downside price action. As seen below, these analysts presented a possible bearish scenario for Ethereum for the coming months.<\/p>\n
The fractal or price forecast below shows ETH\u2019s price might trend downwards until at least October 2022. These models are highly unpredictable but it could provide traders with clarity about the price direction in high time frames.<\/p>\n
On the latter, analysts from Material Indicators said the following highlighting how this data provides a different take on the current ETH\u2019s price narrative away from the migration to a PoS consensus:<\/p>\n
I don\u2019t recommend trading fractals or taking them too literally as they can deviate in both price range and time or invalidate anytime. That said\u2026 All of the above elements paint a very compelling story for #ETH based purely on algos and TA without any of the POW (Proof-of-Work) \u2013> POS (Proof-of-Stake) chatter<\/p>\n
ETH\u2019s price forecast for the coming months. Source: Material Indicators via Twitter<\/p>\n
<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-4666","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/4666","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=4666"}],"version-history":[{"count":0,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/4666\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=4666"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=4666"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=4666"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}