11-14-2020 icon

Data Suggests $560 Ethereum Price Won’t Happen

By calvin
ethereum price

As Ethereum and Bitcoin reach new highs, more analysts expect the upward price trends to continue. It is hoped that the next crypto-bull market will mirror the one seen in 2017.

Ethereum Price Follows Bitcoin

The price of Bitcoin rose by 18.5% over 10 days, convincing many that the price could continue to rise to levels as high as $17,000. As ETH prices usually follow similar trends to Bitcoin prices, many were hopeful for the price of ETH to rise to $560 and above.

Ethereum investors that are in profit reached a two-year high of 82.247%. Investors are riding on confidence with new profits and market where altcoins are facing more favourable conditions. There are many reasons to remain cautiously optimistic, however.

Out of the $613 million in Ether options open interest, only 28% is valued at $460 or above. This has been attributed to traders not expecting the prices.

Traders More Optimistic about Bitcoin Markets

Currently, traders are more optimistic about Bitcoin options markets. BTC options are a lot more bullish. As an example, there are $50,000 call options for June and December 2021.

Unlike the Ether markets, traders have placed significantly higher bets above $17,000. 40% of the $3.75 billion BTC options open interest is valued at $16,000 or higher.

Bitcoin has influenced Ethereum throughout the years, especially as new forms of cryptocurrency are introduced to markets. Research by Dune Analytics shows that almost $60 million worth of bitcoins was moved to Ethereum in the month of June. An Ethereum-based product, Wrapped Bitcoin, accounted for 75% of the growth after 4,800 BTC was moved to Ethereum. 

Recent events surrounding ETH 2.0 have led to a pick up in interest for Ethereum. More Ethereum has been staked to bolster ETH 2.0 efforts. ETH 2.0 has been pointed to as the reason for Ethereum’s price trends. One figure suggests that the price of the cryptocurrency could have been much higher if people weren’t so uncertain about the transition to ETH 2.0.

Photo by Vitaly Vlasov from Pexels