- Ethereum has followed Bitcoin’s price action in recent weeks
- The price of the digital asset has swiftly recovered
- ETH/USD is firmly within consolidation between $230 – $250
Ethereum News Today – ETH price has been tracking Bitcoin’s price action closely in recent weeks. This has exposed the coin to intense downwards pressure. The coin has posted a swift recovery from its lows on the daily chart. The coin is firmly within the long-held consolidation phase just between the $230 and $250 areas. Although ETH is outperforming BTC by slightly currently, Ethereum remains closely correlated to Bitcoin. Where the price of Ethereum goes next will depend on Bitcoin’s reaction to its resistance at $9,700.
Analysts have found that ETH managed to fend off a sustained dip below its key support. This could bolster how the coin trades in the coming days. The massive rise in Ethereum’s trading volume is another factor that could come into play in the coming hours due to the networks’ massive rise in options trading.
Ethereum Posted Strong Rebound from its Recent Lows
As of when this content was written, Ethereum was trading up at $235. The digital asset is currently recovering from its daily low of $230. The coin still has a long way to go before reaching several multi-day highs at $250. The coins’ visit to these highs is the reason behind ETH’s loss of stability when it comes to price action, because of the rejection of the coin faced in this area. This point was where the recent sharp selloff began.
The turbulence came in-sync with Bitcoin’s volatility, as the top crypto rallied to $10,050 before a harsh selloff sent it to $9,000. The correlation between ETH and BTC is still strong, which is why Ethereum rebounded overnight with Bitcoin. Analysts believe Ethereum has recaptured its key support against the USD.
Bitcoin’s Stability Will Determine Whether Ethereum Can Reach $250 or Not
Whether the price of Ethereum reaches the $250 position or not will probably depend on whether the price of Bitcoin can stabilize in the mid-$9k range. However, the price of Ethereum may also see some level of volatility in the future because of the network’s heightened options trading activity.
According to Arcane Research in a recent report that it released, the OI for the Ethereum network’s options has now reached a whopping $150 million. The research also provided a chart that clearly shows the massive growth that Ethereum’s options have enjoyed in both OI and trade volume that the cryptocurrency’s options in recent weeks. It seems this number will continue to rise in the near-term, as OKEx has now launched contracts for Ethereum. Until now, Deribit was reportedly the only platform that provided Ethereum options contracts. But OKEx has joined the party.