{"id":162511,"date":"2021-01-25T18:38:56","date_gmt":"2021-01-25T15:38:56","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/why-traders-say-ethereum-may-see-a-rinse-pullback-after-breaking-its-two-year-high\/"},"modified":"2021-01-25T18:38:56","modified_gmt":"2021-01-25T15:38:56","slug":"why-traders-say-ethereum-may-see-a-rinse-pullback-after-breaking-its-two-year-high","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/why-traders-say-ethereum-may-see-a-rinse-pullback-after-breaking-its-two-year-high\/","title":{"rendered":"# Why traders say Ethereum may see a &#8216;rinse&#8217; pullback after breaking its two-year high"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2f9122c4612\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2f9122c4612\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/why-traders-say-ethereum-may-see-a-rinse-pullback-after-breaking-its-two-year-high\/#Ether_pulls_back_against_Bitcoin_as_BTC_begins_to_rally\" >Ether pulls back against Bitcoin as BTC begins to rally<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/why-traders-say-ethereum-may-see-a-rinse-pullback-after-breaking-its-two-year-high\/#Record_options_expiry_coming\" >Record options expiry coming<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Why traders say Ethereum may see a &#8216;rinse&#8217; pullback after breaking its two-year high <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>Several traders believe that the price of Ether (ETH) could pull back after it achieved a new all-time high on Jan. 25,\u00a0gaining nearly 100% in January. Ether has\u00a0outperformed Bitcoin (BTC) so far this year, buoyed by the growing number of users on Ethereum.<\/p>\n<p>Primarily due to the growing demand for DeFi, the Ethereum network has seen an increase in user activity and transaction volume.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/b36a7a69-02c2-45fa-8280-43bf71d0da57.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>ETH\/USDT 15-minute price chart (Binance). Source: TradingView.com<\/em><\/figcaption><\/figure>\n<p>This has also led the popularity of the term \u201cEthereum\u201d to increase significantly on Google Trends, breaking its previous high from January 2018. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/45007075-e968-489b-99a5-690d7ecb0078.jpg\"><figcaption style=\"text-align: center;\"><em>Google searches for &#8220;Ethereum.&#8221; Source: Google Trends<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Ether_pulls_back_against_Bitcoin_as_BTC_begins_to_rally\"><\/span>Ether pulls back against Bitcoin as BTC begins to rally<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the past week, the price of Ether has seen some inverse correlation with Bitcoin. The ETH\/BTC pair broke out against Bitcoin,\u00a0hitting the highest levels since September 2019.\u00a0<\/p>\n<p>But oftentimes, when the price of Bitcoin rose, ETH pulled back, and vice versa. When Bitcoin rallied, altcoins also performed poorly, which suggests that profits are flowing into and out of Bitcoin based on market sentiment.<\/p>\n<p>If the market is more confident and is attracted to high-risk bets, then altcoins tend to rally while Bitcoin consolidates.<\/p>\n<p>Hence, when the market becomes focused on Bitcoin once again, altcoins and Ether typically consolidate, as BTC sees an explosive upside movement.<\/p>\n<p>On Jan. 25, Bitcoin broke out of its four-day range, rising by more than 7% on the day. In the same period, the ETH\/BTC pair dropped by around 4.9%.<\/p>\n<p>Loma, a cryptocurrency trader, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/LomahCrypto\/status\/1353591858832662529\">said<\/a> that the price action of ETH suggests a pullback is likely to flush late buyers. He said:<\/p>\n<blockquote><p>\u201cSomething about this $ETH PA tells me we&#8217;re going to rinse some ATH breakout longs over the next few days.\u201d<\/p><\/blockquote>\n<p>The trader predicted the drop as ETH surpassed $1,470, and the price of ETH has dropped by more than 5% since.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Record_options_expiry_coming\"><\/span>Record options expiry coming<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A variable that could affect the near-term price trend of Ether is a record options expiry.<\/p>\n<p>Around $400 million worth of options is set to expire on Jan. 29. Considering that many traders are likely to adjust their positions before the expiry, ETH could see a big spike in volatility.<\/p>\n<p>The expiry may play into ETH\u2019s favor or could place selling pressure on it. If the price of ETH drops steeply in the coming days and pushes it toward the max pain price at $800, then it could amplify the downtrend of ETH.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/b904db13-1c60-49e6-904a-bd32ee592bac.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>ETH options expiry. Source: Deribit, Unfolded<\/em><\/figcaption><\/figure>\n<p>The term &#8220;max pain&#8221; in options refers to the price point where the highest number of traders would face the most losses. <\/p>\n<p>ETH is highly unlikely to fall by nearly 50% to $800 by Jan. 29, especially considering its momentum. But due to the unprecedented demand for ETH and the cryptocurrency\u2019s high volatility, a minor pullback before the expiry could have a negative impact on the short-term price cycle of ETH.<\/p>\n<p>The fundamentals for ETH still remain strong, however, as analysts at Intotheblock said. They <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/intotheblock\/status\/1353681964121907200\">wrote<\/a>:<\/p>\n<blockquote><p>\u201cThe price of #Ethereum broke a new ATH today of $1,475. On Friday, we wrote about a few of the reasons why we are bullish on $ETH including: &#8211; Increasing supply scarcity &#8211; DeFi exponential growth throughout 2020 &#8211; Network adoption and growth.\u201d<\/p><\/blockquote>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/why-traders-say-ethereum-may-see-a-rinse-pullback-after-breaking-its-two-year-high\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Why traders say Ethereum may see a &#8216;rinse&#8217; pullback after breaking its two-year high &#8221; Several traders believe that the price of Ether (ETH) could pull back after it achieved a new all-time high on Jan. 25,\u00a0gaining nearly 100% in January. Ether has\u00a0outperformed Bitcoin (BTC) so far this year, buoyed by the growing number&#8230;<\/p>\n","protected":false},"author":1,"featured_media":162512,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDEvM2IxYjcxZjYtMTFhOC00ZWYzLWE5ZjEtMzViNmEzNTAyZmQ4LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[82402,74891,73785],"class_list":["post-162511","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-ether-price","tag-ethereum","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/162511","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=162511"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/162511\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/162512"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=162511"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=162511"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=162511"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}