After a recent rally in the first half of October, Ethereum (ETH) managed to climb back to $2.6K, marking a 12% recovery from its low of $2.3K. However, the journey towards $2700 has hit a snag, with ETH currently trading at $2,614.
Investors are closely watching Ethereum’s price movement as it approaches the key resistance level of $2700.
Anticipated Future of Ethereum
Looking at the recent market trends, the Chaikin Money Flow for ETH has been on the rise, indicating increased capital inflows into the cryptocurrency. Despite a slight easing of the indicator in the past few days, there’s still optimism in the market.
An obstacle lies ahead as ETH faces resistance at the $2700 level, which coincides with a supply zone and a bearish order block. Additionally, a trendline resistance may further impede its upward movement.
If Ethereum fails to overcome this resistance, a potential price correction towards the 50-day Exponential Moving Average (EMA) at $2.5K could be on the horizon.
However, a positive trajectory for ETH might unfold if Bitcoin (BTC) continues its bullish trend above $68K, potentially propelling Ethereum to reach $2.9K, marking an 8% increase.
Options Data Analysis
Despite the positive outlook, options data from Deribit suggests a cautious approach towards ETH’s performance in the near future. The market sentiment indicates a low probability of Ethereum surpassing $3K by the end of October, at just 6%.
However, the odds improve significantly, reaching 21%, by November 8th, post the U.S. elections. This indicates that a substantial ETH breakthrough above $3K might be more likely after the election results, especially considering potential regulatory implications for the DeFi sector.
While the recent increase in Open Interest for ETH on Binance signals bullish sentiment, it’s crucial to note that high leverage poses a significant liquidation risk, especially in volatile market conditions.
As Ethereum navigates through key support levels at $2300 and the 50-day EMA, investors are advised to exercise caution and closely monitor price movements to make informed decisions.
Disclaimer: The views expressed herein are for informational purposes only and should not be construed as financial advice. Always conduct thorough research before making investment decisions.