Ether’s Price Action Mirrors Early August Pattern, Hinting at Renewed Bull Run
Ether’s Price Decline and Recent Rebound
Ether’s (ETH) price action is mirroring a pattern seen during the early August bottom, hinting at a renewed bull run ahead. Ether has faced a steep decline of 32%, dropping to $2,770 since mid-December and has lagged significantly behind its larger rival, bitcoin (BTC). The volatility reached new heights on Monday when prices plummeted to nearly $2,000 on several exchanges, only to rebound to $2,700 on the same day, the biggest one-day swing since September 2021.
Trading Volumes and Market Sentiment
The dramatic two-way price action resulted in a surge in trading volumes on platforms like Coinbase (COIN) and Bitstamp, hitting levels not seen since August. The spike in volume means selling pressure likely peaked at the beginning of the week, leaving fewer potential sellers in the market. That could help stabilize prices, potentially setting the stage for a rally.
Pattern Recognition and Historical Context
That’s precisely the pattern observed on Aug. 5, when ETH hit a low of around $2,100 in a two-way action on the back of high volumes. The cryptocurrency stabilized in the $2,200-$2,800 range for a few weeks, breaking into a new uptrend later that saw prices rise to $4,100. Let’s see if history repeats itself.
Strong Demand and Bullish Signals
Demand during Monday’s dip supports the bullish case. “I am noting strong over-the-counter demand for ETH, which is particularly noteworthy amid broker chatter around a fund blowing up amidst weekend volatility,” Jake Ostrovskis, an OTC trader at crypto market maker Wintermute, told CoinDesk Tuesday.
Plus, the U.S.-listed spot ether ETFs have registered $420 million in net inflows this week, according to Farside Investors. That’s nearly 13% of the total $3.18 billion inflow since inception.
Bull Call Spread and Year-End Targets
If that’s not enough, a large bull call spread crossed the tape on Deribit this week, involving a long position in the $3,500 call option and a short position in the $5,000 call option, both expiring on Dec. 26, 2025. The strategy aims to profit from a rally to $5,000 and higher by the year-end.
Conclusion:
Ether’s price action is mirroring a pattern seen during the early August bottom, hinting at a renewed bull run ahead. The recent price decline and rebound, combined with strong demand and bullish signals, suggest that the market may be poised for a rally. However, it is essential to keep in mind that the cryptocurrency market is known for its volatility, and any predictions should be made with caution.
FAQs:
Q: What is the current price of Ether (ETH)?
A: The current price of Ether (ETH) is $2,770.
Q: How much has Ether’s price declined since mid-December?
A: Ether’s price has declined by 32% since mid-December.
Q: What is the current trading volume on platforms like Coinbase (COIN) and Bitstamp?
A: The trading volume on platforms like Coinbase (COIN) and Bitstamp has surged to levels not seen since August.
Q: What is the significance of the bull call spread on Deribit?
A: The bull call spread on Deribit involves a long position in the $3,500 call option and a short position in the $5,000 call option, both expiring on Dec. 26, 2025. The strategy aims to profit from a rally to $5,000 and higher by the year-end.
Q: What is the total inflow into U.S.-listed spot ether ETFs since inception?
A: The total inflow into U.S.-listed spot ether ETFs since inception is $3.18 billion.
