Following Ethereum’s Price Rejection At $2,000, Traders Wince!
According to the data, pro traders are quite skeptical about Ethereum’s price Rally that followed an Eth price Resistance at USD 2000.
On August 14, it was found that ETH (Ether) had rejected the resistance level at USD 2000 after a solid price gain of 82.8 percent. On the trading chart, a resizing wedge formation has been visible since July 13, and it seems like soon there will be a bull market.
Following Ethereum’s Price Rejection At $2,000, Traders Wince
As per several critics, the transition of POW to POS has been delayed for many years, and the Merge would not solve the scalability issue alone. The Ethereum Network Migration to sharding (a parallel processing algorithm) would happen in 2023 or early 2024.
Also, soon, the Ethereum Network expects to transition from the POW consensus algorithm to POS in mid-week September.
There has been a lot of criticism for the Ethereum Beacon Chain upgradation even though it eliminates the need for high-energy-intensive devices to mine Ethereum. With the decreased supply of Ethereum, the price has rallied recently. Looking at the long term, it is hard to predict the price as investors are quite skeptical about Ethereum Staking and do not know about the instant transfers after the Merge.
Ethereum Technical Analysis
According to the Ethereum trading chart, the Ether had taken a toll on the buying power. Several Indicators on trading charts depicted the same. Based on the RSI (Relative Strength Index), the buyers are fewer than the Ethereum Market sellers.
The Ethereum price would fall to USD 1745, where it might see demand. Per the 20 SMA indicator, the buyers might drive high momentum in the cryptocurrency market.
Ether’s weekly price chart shows a sell signal indicating a bear trend. Also, the MACD had undergone a bearish crossover forming a red histogram below the zero line. Such formations are the signals that sellers will sell Ethereum. Also, there was a negative price direction depicted by Parabolic SAR.
Also, various other indicators have shown that Ethereum is heading in the negative price direction, proving that the bears are much stronger than the bulls on the Ether Price chart.
A Dubious Sentiment Reflected By The Options Market
An interesting scenario was witnessed at Ethereum’s Derivative markets that explained how arbitrage desks and whales were positioned. Based on the 25% delta skew, traders can be overcharged for downside and upside protection. If traders were fearful, the price would have crashed, but the skew indicator is 12% above that, indicating excitement.
The Skew had remained quite neutral since Ethereum began to rally. With no signs of market sentiment improvement, Eth Option traders are analyzing the risks associated with bear and bull trends.
On the other side, there hasn’t been much change in the market makers’ and whales’ leverage positions. Also, the professional traders are quite dubious about the Ethereum price that 2000 USD resistance could be easily broken.