Why does ETH have to stay at least over $ 4000 for the next 24 hours?

Another option sequence triggers mixed opinions about the ETH price for a short time. Given the turmoil in the market, traders on both sides have their own reasons to back up their predictions here.

The ETH price has slumped for over a week, but the macroeconomic uptrend remains unaffected. Although the largest altcoin is down nearly 5% in the past week, it is still hovering above $ 4,000. At the time of analysis, the price for ETH is $ 4,037.

Follow the upward trend?

While short-term corrections won’t make big fundamental changes, it is necessary to stick to current market sentiment to know what to expect in the future.

According to data from Skew, more than 164,100 ETH contracts are currently expiring in 2 batches: 155,800 expired on December 10th and the remaining 8,300 today (December 11th).

Looking at the chart below, the number of buy (call) and sell (put) contracts is fairly even on both days. This means that the fight between bulls and bears will be intense.

ETH option contract OPI after expiry time | The source: Crookedness

Additionally, Skew’s Open Interest (OI) -to-strike chart shows a dominance of long positions in the strike bands above $ 4,000 while shorts dominate in the lower bands.

ETH option contract OPI at the exercise price | Source: Skew

It should be noted, however, that bearish sentiment is stronger right now. At the time of writing, nearly 3,337 DBT short contracts with ETH forecast of $ 3,500 and 1,907 contracts with a $ 4,000 strike have been bought.

However, with exercise prices of $ 4,300 and $ 4,500, the market is not entirely free of bullish traders.

Looking at the above data sets, it can be seen that most of the new traders entering the market are pessimistic about ETH price.

Survival situation

The price of ETH is indeed at a point of indecision. As the chart below shows, ETH has only fallen below $ 4,000 twice in December: on December 4th when the entire market collapsed, and two days later on December 6th. Apart from these two cases, the price can generally withstand higher.

At the time of the analysis, ETH is recovering from the daily lows of USD 4,021. In fact, the candle produces green, which shows that the altcoin is trying to hold above $ 4,000.

If it stays that way, it is more likely that the downtrend will gradually fade in the near future. Conversely, if the price falls below $ 4,000, it could go wrong. Also, since traders have the right to exercise ETH put options, it is easy to initiate a sell trend.

ETH / USDT | Source: TradingView

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