Why does ETH have to stay at least over $ 4000 for the next 24 hours?

Another sequence of options is causing controversy over the price of ETH for a short time. Given the turmoil in the market, traders on both sides have their own reasons for confirming their predictions.

ETH price has been falling for over a week, but the macroeconomic upward trend remains unchanged. Although the largest altcoin has dropped nearly 5% over the past week, it still hovers above $ 4,000. At the time of analysis, the price of ETH is $ 4037.

Are you watching an uptrend?

While short-term corrections will not lead to big fundamental changes, it is necessary to stick to the current market sentiment in order to know what to expect in the future.

More than 164,100 ETH contracts are currently expiring in two installments, according to Skew, with 155,800 expiring on December 10 and the remaining 8,300 today (December 11).

Looking at the chart below, you can see that the number of buy (call) and sell (put) contracts on both days is almost the same. This means that the fight between bulls and bears will be intense.

ETH OPI Option Contract After Expiration | Source: Crookedness

In addition, the Open Interest (OI) chart for Skew strikes shows the predominance of long positions in the strike bands above $ 4,000, while short positions prevail in the lower bands.

ETH OPI Option Contract at Strike Price | Source: Skew

However, it should be noted that the bearish sentiment is now strengthening. At the time of writing, almost 3,337 short contracts have been purchased on DBT with an ETH forecast of $ 3,500 and 1907 contracts with a $ 4,000 strike.

However, with strike prices of $ 4300 and $ 4500, the market is not entirely free of bullish traders.

Looking at the datasets above, one can see that most of the new traders entering the market are pessimistic about the price of ETH.

Survival situation

The ETH price is indeed in a state of uncertainty. As shown in the chart below, in December, ETH fell below $ 4,000 only twice: on December 4, when the entire market crashed, and two days later, on December 6. Except for these two cases, the price can generally withstand the higher.

At time of analysis, ETH is recovering from daily lows of $ 4021. In fact, the candle is emitting green, which means the altcoin is trying to hold above $ 4,000.

If so, it is more likely that the downtrend will gradually disappear in the near future. Conversely, if the price falls below $ 4,000, things can go wrong. In addition, since traders are allowed to use ETH put options, it is easy to initiate a sell trend.