In the bull market rebound of the cryptocurrency market, Ethereum is facing a turning point that may usher in a bear market. Option data shows investors' cautious attitude, while the weakening of whale interest and slowing internet speed have also exacerbated market concerns
In the bull market rebound of the cryptocurrency market, Ethereum is facing a turning point that may usher in a bear market. Option data shows investors' cautious attitude, while the weakening of whale interest and slowing internet speed have also exacerbated market concerns.
With the cryptocurrency market generally bullish, Ethereum (ETH) is facing unexpected bearish pressure. According to data from Greeks. Live, out of approximately 200000 ETH options that are about to expire, the put option ratio reaches 0.87, indicating a bearish sentiment in the market. In addition, the highest pain level reached $1650, with a total nominal value of $330 million. This situation has sparked market attention and concerns.
This increasingly bearish sentiment becomes more pronounced when the decline in open positions on various exchanges is observed. This indicates that interest in Ethereum options and futures is weakening. In addition, implied volatility, as an indicator of expected price fluctuations, has also decreased. This may mean that the market expects Ethereum's prices to remain relatively stable in the short term, indicating a lack of significant purchasing interest. These factors collectively indicate that the market's cautious sentiment towards Ethereum is intensifying.
In addition, Ethereum's 25DeltaSkew, an indicator used to evaluate the sentiment of the options market, has also experienced a downturn. This change indicates that the sentiment of option traders is more pessimistic. Therefore, this may reflect a lack of confidence in the short-term price outlook of Ethereum.
It is worth noting that, contrary to these bearish indicators, there has been no large-scale liquidation of long or short positions in the ETH market. This indicates that traders are taking a cautious attitude towards Ethereum and avoiding large-scale bets on cryptocurrencies.
In addition to options market data, there is also evidence that whale interest in Ethereum is declining. According to Glassnode's data, the number of addresses holding 1000 or more ETHs has dropped to its lowest level in five years, with a total of 6010 addresses.
This indicates that important holders have either reduced their positions or transferred their ETHs to other locations, which may have a negative impact on Ethereum's prices.
In addition, the Ethereum network also shows signs of slowing down. The network growth that measures the number of new addresses interacting with ETH has been declining. In addition, the transmission speed of ETH has also slowed down, indicating a decrease in the frequency of ETH movement between addresses. These indicators collectively indicate that people's interest in Ethereum is weakening.
Finally, the market value to realized value ratio (MVRV) of Ethereum is relatively high. This ratio compares market prices with the actual value of ETH. A high MVRV ratio may indicate that profiteers are about to face selling pressure, which may cause downward pressure on ETH prices.
Observing the trend of Bitcoin prices over a 4-hour time frame, we can see that the pivot point is at $27878. After facing a direct support level of $27275, Bitcoin has direct resistance of $28565 and further resistance of $29261.
On the downside, the direct support level for this asset is $27275, while subsequent support levels are $26790 and $26435.
The relative strength index (RSI) has a value of 63, indicating a slight upward trend in market sentiment. The index is above the midpoint of 50, but has not yet reached the overbought area of 70.
In addition, Bitcoin's current price is above the 50 day moving average (EMA), which is $27450. This further confirms the current short-term bullish trend.
The 4-hour chart shows an upward channel pattern, indicating that the market is full of buying interest. The presence of 50EMA also strengthens purchasing sentiment. This combination suggests that Bitcoin's bullish momentum may continue.
As of now, there have been no significant fundamental news events that have had an impact on the price of Bitcoin. Overall, the market trend of Bitcoin tends to be bullish, especially if it can remain above the key support level of $27275.
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