Popular crypto analyst Michaël van de Poppe has highlighted vital price levels in the Ethereum (ETH) market following a massive option expiry event. This development comes amidst high whale activity on the Ethereum network.
ETH To Break Out At $2,750, Analyst Says
On Friday, approximately $1.02 billion worth of Ethereum options contracts with the max pain point established at $2,600. Amidst this massive option expiry, the price of ETH rose by over 3% to trade at $2,547 despite fears of price decline due to increased market volatility.
Following this price gain, Van de Poppe that Ethereum now finds itself between two routes, especially as the “macroeconomic weeks” approach.
Options expire day is done! bounced upwards, and now the macroeconomic weeks are kicking in. The question is: are we going to see some upward momentum or will it retest $2,000? Testing $2,750 again = breakout. — Michaël van de Poppe (@CryptoMichNL)
Notably, the US elections are set to be held in a fortnight, the results of which are expected to wield a significant effect on the crypto market. Moreover, there is still anticipation of a Fed rate cut in November which could avail liquidity for investing in volatile assets such as Ethereum.
First, the analyst postulates that ETH could produce an upward momentum reaching $2750, a significant resistance level at which the token has suffered rejection thrice since August. However, van de Poppe predicts if the second-largest cryptocurrency retests at its price zone again, it will result in a breakout rising as high as $3,350.
Alternatively, the crypto analyst forecast Ethereum may experience a price drop in line with its current consolidation pattern. In this case, ETH would initially retest at $2,300. However, amidst massive bearish pressure, the altcoin could fall to $2,000.
Ethereum Whale Activity Reaches Six-Week High
In other news, analytics firm Santiment that Ethereum has recorded its highest amount of whale activity over the last six weeks amidst its price decline. Traditionally, this high market activity indicates accumulation by large holders on the Ethereum network, signaling confidence in the asset’s long-term profitability.
At press time, ETH trades at $2,445 reflecting a price decline of 1.67% in the past day. However, its daily trading volume is up by 57.97% and is valued at $23.14 billion. The recent dip in ETH’s price can be attributed to a recent controversial report on USDT stablecoin operator Tether, as well as reported Israeli attacks on Iran.
Ethereum remains an investors’ favorite ahead of a highly anticipated crypto bull run. Multiple analysts have recently pinpointed a $10,000 price target citing reasons including historical performances in previous bull cycles.
Featured image from Forbes, chart from Tradingview