Ethereum price hits a $1,500 all-time high as ETH options and DeFi heat up

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The value of Ether (ETH), the native cryptocurrency of the Ethereum blockchain community, achieved a brand new all-time excessive of $1,500 as we speak. Information means that the ETH choices market confirmed dominant name exercise, and this can be a major issue within the rally to a brand new excessive.

Throughout main exchanges, the value of ETH surpassed $1,500 after the choices market confirmed dominant name exercise.

Within the choices market, there are two kinds of contracts: places and calls. Places are promote orders, and calls are purchase orders. When there are extra calls out there, it means the choices market is bullish.

ETH/USDT 15-minute chart (Binance). Supply: TradingView.com

The choices market was dominated with calls earlier than the rally

Earlier than the rally to a brand new all-time excessive, analysts at Laevitas, a knowledge analytics platform, mentioned 80% of Deribit’s ETH quantity has been dominated by calls.

Primarily based on this quantity pattern, the analysts predicted that ETH is more likely to see a significant rally. They said:

“#ETH 1-month VIX has reset to ranges final seen in early January whereas worth is stabilising near ATH. 80% of @DeribitExchange quantity as we speak is dominated by calls, this appears to be like prefer it’s about to pop.”

Inside hours, ETH surged previous $1,500, recording a brand new all-time excessive for the second time in a month.

ETH had been flirting with the all-time excessive all through the previous week, however every time it has gotten near the resistance, the value has rejected to the closest underlying assist.

The truth that the value did not see a deep pullback after retesting the earlier record-high meant the resistance was weakening. Therefore, on its fourth retest, the resistance degree was breached.

As Three Arrows Capital CEO Su Zhu mentioned, the momentum of Ether has been so robust that if an investor bought BTC to ETH on the $41,000 peak, the investor would have made greater than promoting to the U.S. greenback. He said:

“Loopy thought, however you’d’ve made extra promoting $BTC to $ETH than btc to usd on the native 41k prime. Crypto/crypto if you wish to play cycles. Crypto/fiat up solely.”

So, what’s subsequent for Ethereum?

Merchants say that if the Ether every day candle closes above $1,440, it will solidify a bullish uptrend. A pseudonymous dealer generally known as “Dealer Koz” said:

“Each day shut above $1,440 confirms the low being in, for my part. Nonetheless time for this to get rejected so I am making an attempt to carry off on the full-blown celebration till later.”

Researchers at IntoTheBlock shared an identical sentiment. After Ether broke $1,500 for the primary time in historical past, the researchers said on-chain exercise has returned to January 2018 numbers.

“ETH breaks the $1,500 barrier for the primary time and enters into worth discovery. And to rejoice the ATH, listed here are some information: – 100% addresses profitability – On-chain transactional exercise again to Jan 2018 numbers (averaging 1.16m every day) – 52.38m addresses holding ETH (ATH)”