In recent weeks, Bitcoin’s price has moved past the critical $30,000 resistance level, pushing several altcoins to a remarkable bullish rally. However, ETH price failed to get a significant boost from BTC’s rally and continued to consolidate near the $1.9K region. In addition, rising ETH gas fees and scaling issues hindered the upward price trajectory, shifting investors’ attention to other potential altcoins.
ETH holders jump into Bitcoin’s rally
Both Bitcoin and Ethereum traded above their respective maximum pain points. This generally indicates bullish market sentiment, as the price of these assets exceeds the level at which option holders (both calls and puts) would incur maximum financial losses. However, despite this apparently favorable condition, Ethereum fails to produce a promising increase compared to Bitcoin.
The price weakness seen in Ethereum has prompted a significant number of market makers to continue offloading their ETH call options, suggesting a lack of confidence in Ethereum’s near-term price potential. This sell-off in ETH call options adds to the overall selling pressure that Ethereum is currently facing.
In addition, the widely held trading pair in the crypto market, Ethereum/Bitcoin (ETHBTC), has just closed trading at an all-time low in the past 300 days.
While both Bitcoin and Ethereum have seen significant upward shifts in recent trading sessions, Bitcoin’s sudden rise in dominance and increased strength relative to Ether has caused ETHBTC to surge to multi-month lows. This has resulted in a bearish environment for the price of Ethereum.
What to expect from the next ETH price?
Ethereum has shown a narrow trading pattern in recent days, fluctuating between USD 1,930 and USD 1,840. This indicates a degree of uncertainty between the bullish and bearish forces of the market. At the time of writing, the ETH price is trading at $1,894, up nearly 1% from yesterday’s price.
Signals such as the upward trajectory of the 20-day EMA at $1,878 and the RSI remaining in positive territory suggest that the bulls have a slight advantage. If the buyers can push the price above $1,940, the ETH price could rise to the significant psychological threshold of $2,000. This milestone could pose a challenge, but it is likely that it will be surpassed, potentially sending the price skyrocketing to $2,148.
Conversely, if the bears want to suppress this potential rally, they will have to drag the price below the $1,846 support level. If this happens, the ETH price could potentially drop below the EMA200 trendline on the 4-hour price chart, a crucial point to watch closely. If this support level is breached, we may see the price fall further towards $1,700.