Ethereum price hits a $1,500 all-time high as ETH options and DeFi heat up
The price of Ether (ETH), the native cryptocurrency of the Ethereum blockchain network, achieved a new all-time high at $1,500 today. Data suggest that the ETH options market showed dominant call activity and this may be a primary factor in the rally to a new high.
Across major exchanges, the price of ETH surpassed $1,500, after the options market showed dominant call activity.
In the options market, there are two types of contracts: puts and calls. Puts are sell orders and calls are buy orders. When there are more calls in the market, it means the options market is bullish.
The options market was dominated with calls before the rally
Before the rally to a new all-time high, analysts at Laevitas, a data analytics platform, said 80% of Deribit’s ETH volume has been dominated by calls.
Based on this volume trend, the analysts predicted that ETH is likely to see a major rally. They said:
Within hours, ETH surged past $1,500, recording a new all-time high for the second time in a month.
ETH had been flirting with the all-time high throughout the past week but each time it got close to the resistance the price rejected to the closest underlying support.
The fact that the price didn’t see a deep pullback after retesting the previous record-high meant the resistance was weakening. Hence, on its fourth retest, the resistance level was breached.
As Three Arrows Capital CEO Su Zhu said, the momentum of Ether has been so strong that if an investor sold BTC to ETH at the $41,000 peak, the investor would have made more than selling to the U.S. dollar. He said:
So what’s next for Ethereum?
Traders say that if the Ether daily candle closes above $1,440, it would solidify a bullish uptrend. A pseudonymous trader known as “Trader Koz” said:
Researchers at IntoTheBlock shared a similar sentiment. After Ether broke $1,500 for the first time in history, the researchers said on-chain activity has returned to Jan 2018 numbers.
This content was originally published here.