Crypto Industry News:
When it comes to Friday's $ 930 million ethereum option expiration, the bulls have an edge of $ 115 million. This is a signal that ETH may be on track to reach new price records.
In the past few weeks, the price of ethereum has hovered between $ 2,000 and a record $ 2,650. The 20% drop on April 17 eliminated $ 1 billion from long positions in futures markets and drastically reduced investors' risk appetite.
A 28% increase in the past few days has brought the number of open positions on ETH futures to $ 8.2 billion, just 5% below the April 15 record. A similar situation occurred in the options markets, which have increased by 45% since the expiry on March 25.
Options are similar to futures in that derivative contracts give investors a right, but not an obligation, to sell or buy an asset for a predetermined price.
The recent rebound in prices was attributed to a statement by the Paypal boss that said demand for cryptocurrencies was many times higher than expected. What's more, the net value locked in Ethereum's smart contracts hit a record high of over $ 54 billion, led by Uniswap, Compound and Maker.
Technical Market Outlook:
The ETH/USD pair has made another all time high at the level of $2,714. There is a Bearish Engulfing candlestick pattern made at the top of the rally, so it is a time for a local pull-back, but any further rally will lead to another wave up towards the round level of $3,000. The immediate technical support is located at $2,543. The momentum remains strong and positive, so the odds for another wave up are high.
Weekly Pivot Points:
WR3 - $3,085
WR2 - $2,863
WR1 - $2,509
Weekly Pivot - $2,289
WS1 - $1,926
WS2 - $1,691
WS3 - $1,326
Trading Recommendations:
The longer term up trend on the Ethereum continues despite the local counter-trend corrections. When the correction is terminated, the next long term target for ETH/USD is seen at the level of $3,000. The key long term technical support is seen at the level of $2,000, so only a weekly candle close below this level will invalidate the bullish scenario.
