$250 is Ethereum’s New Resistance Zone Ahead of ETH2.0
Bitcoin and Ethereum
Ethereum’s price has zoomed past the $225- $228 resistance zone.
The next price level of considerable resistance for ETH is at $250.
Deribit experienced a record volume of $20 million in ETH options traded.
ETH’s price could keep moving up as all bets are on ETH2.0 being launched in July.
Traders and investors are very much pleased with Ethereum’s performance in the last week. The price of ETH has gained steadily from a value of around $200 on the 26th of May, to a local peak of $247 (Binance rate) witnessed earlier today. This translates to approximately 23.5% in price movement in less than a week.
Ethereum (ETH) Options on Deribit Experience Record Volumes
The excitement surrounding the trading of Ethereum can be seen via a record volume of ETH options traded on the derivatives platform of Deribit. According to the team at Skew.com, $20 Million in Ethereum options was notionally traded yesterday, May 30th. The team went on to share a more elaborate chart in the tweet below that provides a better visual cue of the increment in ETH options traded on Deribit since mid-April.
. Therefore, the price of Ethereum still has room to grow in anticipation of the eagerly awaited ETH2.0 upgrade that will usher in a new era of stacking for the network.
Brief Technical Analysis of Ethereum
Further checking the 6-hour ETH/USDT chart courtesy of Tradingview.com, we observe the following.
Trade volume is in the red indicating some selling pressure as the move to $247 experiences a retracement.
MACD and MFI also point towards a retracement for Ethereum or sideways leading into the week.
Ethereum’s current price at $235 is above the 50, 100 and 200 moving averages on the 6-hour time frame further pleading the case of a bullish environment for ETH.
The earlier mentioned $225 – $228 zone has now been converted into a support zone.
Other Ethereum price zones providing short term support are at $220, $215, $207 and $200.
In terms of resistances, $247 – $250 is the next area of considerable resistance for Ethereum as its price rallies ahead of the launch of ETH2.0.
As with all technical analyses of Ethereum, traders and investors are advised to use appropriate risk management techniques as well as stop losses to protect their ETH holdings from the crypto market volatility.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.