Key Points
- Ethereum (ETH) has seen an 8% rise, surpassing $2,650, recovering over 30% from sub $2,000 levels.
- The upcoming expiry of 206,000 ETH options could impact Ethereum’s price dynamics.
Ethereum (ETH), the world’s second-largest cryptocurrency, has seen a significant surge of over 8% in the last 24 hours, pushing its value above $2,650. This rise comes after a recovery of more than 30% from its sub $2,000 levels, which it hit earlier this week during the Black Monday crash.
Ethereum (ETH) and Bitcoin (BTC) share a correlation index of 0.82 over a 90-day period, indicating that these two asset classes often move in tandem. Blockchain analytics platform Santiment reports that Bitcoin and Ethereum remain the preferred choice for investors amidst this wider market recovery.
Strong Accumulation Trend
During the recent price dip, Ethereum addresses added a significant 757,000 ETH, indicating a strong accumulation trend during the correction. On-chain data aggregators report that Ethereum accumulation addresses holding between 10-10K ETH and 10K-100K ETH have consistently increased their allocations since July.
After Monday’s lows, large addresses absorbed a significant amount of Ethereum. Addresses with balances of 10 to 10K holdings added a total of 530K ETH, while addresses holding 10K and 100K added a total of 227K ETH after August 5th.
ETH Options Expiry and Price Trajectory
On August 9, a total of 206,000 ETH options are due to expire. The options have a put call ratio of 0.96, indicating a closely contested battle between the bulls and the bears. The options have a max pain point of $2,950 and a notional value of $560 million, reflecting the substantial market interest and potential impact on Ethereum’s price dynamics.
As Ethereum’s price sharply recovers, analysts expect sideways consolidation over the next few weeks. CrediBULL Crypto, a well-known crypto trader, predicts that Ethereum may experience “one more marginal lower low”, potentially retesting support at $2,111. He highlights Ethereum’s relative weakness compared to Bitcoin, suggesting that a minor correction in BTC could lead to a more significant decline for ETH.
