Popular crypto analyst Michael van de Poppe highlighted the key price levels in the Ethereum (ETH) market following a major options expiry event. This development comes amidst high activity of whales on the Ethereum network.
Analyst says ETH will breakout above $2,750
On Friday, approximately $1.02 billion worth of Ethereum options contracts were settled at the maximum pain point of $2,600. ETH price rose more than 3% to trade at $2,547 despite fears of a price drop due to increased market volatility as this large option expires.
Following this price increase, Van de Poppe says that Ethereum is currently finding itself between two routes, especially as “Macroeconomic Week” approaches.
Option has expired!$ETH We have recovered to the upside and now the macroeconomic week has begun.
The question is, will we see some upward momentum or will we see a retest of $2,000?
Testing $2,750 again = breakout. pic.twitter.com/vi3JJ3tNeP
In particular, the US elections are scheduled to take place within two weeks, and the results are expected to have a significant impact on the cryptocurrency market. Furthermore, with a Fed rate cut still expected in November, liquidity could be used to invest in volatile assets such as Ethereum.
First, analysts hypothesize that ETH could generate upward momentum that reaches $2,750. This is a major resistance level where the token has been rejected three times since August. However, Van de Poppe predicts that if the second-largest cryptocurrency tests that price range again, it will result in a breakout to $3,350.
Alternatively, cryptocurrency analysts predict that Ethereum could experience a price decline in line with the current consolidation pattern. In this case, ETH will first retest at $2,300. However, amid massive bearish pressure, the altcoin could fall to $2,000.
Ethereum whale activity reaches 6-week high
In other news, analytics firm Santiment reports that Ethereum has recorded the highest amount of whale activity in the past six weeks amid the price decline. Traditionally, this high market activity indicates accumulation by large holders on the Ethereum network, indicating confidence in the long-term profitability of the asset.
At the time of writing, ETH is trading at $2,445, reflecting a 1.67% price decline over the past day. However, its trading volume for the day increased by 57.97%, reaching a value of $23.14 billion. The recent drop in ETH prices may be due to the recent controversial reports regarding USDT stablecoin operator Tether and reports of an Israeli attack on Iran.
Ethereum remains an investor favorite ahead of a highly anticipated crypto bull market. Multiple analysts have recently identified a price target of $10,000, citing reasons such as its past performance in past bullish cycles.
Featured image from Forbes, chart from Tradingview
