Ethereum eyes $2,200 spot target ahead of $230M ETH options expiry on Friday

Ethereum, ETH
Image by Peter Patel from Pixabay
  • $230M ETH options expiry and the $2,200 price target.
  • ETH daily chart. Technical analysis.
  • What’s ahead for the alpha altcoin?

Yerevan (CoinChapter.com) – $230 million Ethereum (ETH) option contracts expire on Friday, July 2. Ahead of the event, many call (buy) and put(sell) option contracts revolve around $2,200.

The $1.5 billion ETH expiry on June 25, the largest one in 2021, was more profitable for bears. According to Bybt.com, for bulls to profit, it was critical for ETH to maintain the estimated $2,200 price margin, which didn’t pan out, as the expiry price was near $1,950.

Ahead of the upcoming Friday expiry, the $2,200 level is relevant again, as the bulls’ lead above that level increases by $18 million, causing an imbalance of $28 million in favor of call options.

ETH call and put options. Source: Bybt.com
ETH call and put options. Source: Bybt.com

As seen on the chart above, only 30 percent of the 110k options were placed below the $2,200, and most of the put options were lower than $1,900.

The options market does not determine the price of the token, however the daily chart flashed bullish predictors.

Also read: Ethereum Testnet Burns ETH Before EIP-1559 Launch

Ethereum daily chart

Ethereum hints at possible gains in the upcoming sessions.

The token traded in a falling wedge pattern, with its upper trendline halting sharp breakouts since mid-May. Meanwhile, the bottom trendline assisted and kept ETH from slipping below the support margin.

The falling wedge is a reversal pattern. It predicts a shift in bias after the formation is exhausted. Therefore, if the pattern pans out, ETH will eye gains shortly.

Meanwhile, ETH retested the resistance margin on June 30th and slid back towards the support line, staying in the falling wedge formation. After an explosive 33 percent rally from June 26 to June 30, Ethereum lost 11 percent of its value over the past two sessions and slid down to $2,036 in the European session Friday.

Ethereum trading in a falling wedge pattern. Source: ETHUSD on TradingView.com
Ethereum trading in a falling wedge pattern. Source: ETHUSD on TradingView.com

The second-largest cryptocurrency sought support from the $2,083 support line but failed to hold it, slipping south early in the Friday session.

What’s ahead?

Ethereum protocol upgrade (London hard fork) approaches, which promises reduced fees and quicker transactions. It could give further bullish incentive to the ETH price. However, the reduced fees also negatively affect the mining rewards. In case of resistance from miners, the hard fork could be delayed.

Also read: Ethereum could overtake Bitcoin after London hard fork

The daily chart technical analysis also indicated a possible increase in the upcoming sessions due to the falling wedge reversal pattern.

Ahead of the July 2 $230 million ETH contract expiry, bulls were striving to hold the $2,200 level. However, the price slid down to $2,047 in the London session Friday.

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