Ethereum (ETH) is Attempting to Bulldoze the $290 Resistance Level

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In brief:

  • It has been an exciting week for Ethereum as ETH broke the $250 resistance level. 
  • Next on its path, is $290 and Ethereum looks set to break this level also by August. 
  • Ethereum open interest on Deribit’s ETH options hit a new all-time high pointing towards increased interest in trading Ethereum. 

It has been an exciting week for Ethereum as the King of Smart contracts zoomed past the difficult $250 resistance level after attempting to break it several times since the Coronavirus crash of mid-March. At the time of writing this, ETH is trading at $284 and has its eyes set on the next resistance level of $290. Beyond this level, Ethereum will have to contend with its next major resistance level at approximately $320.

ETH/USDT chart courtesy of Tradingview.com

A brief look at the daily ETH/USDT chart reveals that Ethereum is clearly in bullish territory as seen through the trajectory of the 50-day, 100-day and 200-day moving averages. However, trade volume has reduced with the MFI hinting of exhaustion of Ethereum in the crypto markets. Perhaps Ethereum will experience some sideways movement in the last week of July before attempting to bulldoze through $290 in the month of August.

Ethereum Open Interest on Deribit ETH Options Hits New All-Time High

The exciting and high trade volume surrounding Ethereum has led to a new milestone on the Deribit exchange. Early yesterday, the team at Deribit announced that the exchange hit a peak 24-hour volume of $49 million with its ETH options. Furthermore, the open interest of these ETH options hit $241 Million. The team summarized these milestones via the following tweet.

We have a new record high for ETH Options volume and open interest!🚀

With a peak 24hr volume of $49 million, the Deribit ETH options OI sits at $241 million (and currently 93% of the global Ethereum market share)!

We can’t wait to see how this evolves! pic.twitter.com/F6vq08TDt6

— Deribit (@DeribitExchange) July 24, 2020

How High Can Ethereum Go?

Bitcoin, Ethereum and the crypto markets have a lot going on in terms of future adoption. To begin with, VISA, Mastercard and Paypal have expressed their willingness to usher in a new era of supporting the adoption of digital assets. Their actions of either facilitatiing digital asset transactions and/or trading, will go a long way in bringing crypto to the mainstream. Additionally, US banks can now offer crypto custody solutions to their customers.

Also to note is that Etheruem is in a unique position given the pending launch of ETH2.0 and the DeFi boom spreading across the crypto-verse. Therefore, it might not be a surprise if Ethereum continues to head up in the long term and revisit price levels last seen in 2017 and 2018.

   

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