Ether’s (ETH) Price action mirroring a pattern seen in the early August bottom, suggesting a renewed bull race ahead.
Ether has been exposed to a steep fall of 32%and fell to $ 2,770 since mid -December and has been lagging significantly behind his larger rival, Bitcoin (BTC). Volatility reached new heights on Monday as prices fell to almost $ 2,000 on multiple exchanges, only to rebound to $ 2,700 on the same day, the biggest one-day swing since September 2021.
The dramatic two -way preaching resulted in an increase in trade volumes on platforms such as Coinbase (Coin) and Bitstamp, which was not seen since August.
The tip of volume means that the sale of pressure is likely to peak at the beginning of the week, leaving fewer potential sellers on the market. It can help stabilize prices and potentially set the stage for a demonstration.
That’s precisely the pattern observed on August 5 when ETH hit a low of about $ 2,100 in a two -way action on the back of high quantities. Cryptocurrency stabilized in the range $ 2,200- $ 2,800 for a few weeks and broke into a new uptrend later, with prices rising to $ 4,100.
Let’s see if the story repeats itself.
Demand during Monday’s DIP supports the bullish case.
“I notice strong demand for ETH, which is especially remarkable in the middle of the broker, scraped around a fund that blasts in the middle of the weekend volatility,” Jake Ostrovskis, an OTC operator at Crypto Market Maker Wintermute, told Coindesk on Tuesday.
Plus, the US -noted Ether ETFs have recorded $ 420 million in net inflow this week, according to Farside Investors. That’s almost 13% of the total Eptom of $ 3.18 billion since its inception.
If that is not enough, a large bull call spread spread the tape on dismissed this week and involved a long position in the $ 3,500 call option and a short position in the $ 5,000 call option, both expiring on December 26, 2025. The strategy is aiming for profits from a rally to $ 5,000 and higher at the end of the year.
