{"id":365699,"date":"2021-11-11T22:56:47","date_gmt":"2021-11-11T19:56:47","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ascending-channel-pattern-and-ethereum-options-data-back-traders-5k-eth-target\/"},"modified":"2021-11-11T22:56:47","modified_gmt":"2021-11-11T19:56:47","slug":"ascending-channel-pattern-and-ethereum-options-data-back-traders-5k-eth-target","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ascending-channel-pattern-and-ethereum-options-data-back-traders-5k-eth-target\/","title":{"rendered":"# Ascending channel pattern and Ethereum options data back traders\u2019 $5K ETH target"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 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-6a299d8bbac32\" 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-6a299d8bbac32\" 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\/ascending-channel-pattern-and-ethereum-options-data-back-traders-5k-eth-target\/#Bears_could_still_tip_the_scale_below_4600\" >Bears could still tip the scale below $4,600<\/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\/ascending-channel-pattern-and-ethereum-options-data-back-traders-5k-eth-target\/#Ether_price_may_pull_back_but_5000_remains_the_target\" >Ether price may pull back, but $5,000 remains the target<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Ascending channel pattern and Ethereum options data back traders\u2019 $5K ETH target <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Ether (ETH) bulls seem excited by the recent $4,870 all-time high that was hit on Nov. 10. While it was a new high in U.S. dollar terms, ETH is still 51% below June 2017\u2019s price in Bitcoin (BTC) terms. But it\u2019s entirely possible that the 0.155 BTC level reached in the previous cycle reflected the overzealous expectations that were rampant during the initial coin offering frenzy.\u00a0<\/p>\n<p>The Ethereum network\u2019s success has caused congestion and high fees, bringing the competition closer. For example, in mid-2017, the leading \u201ccompetitors\u201d were Ethereum Classic (ETC) and NEM (XEM). Combined, those represented a mere 13% of Ether\u2019s $37 billion market capitalization. <\/p>\n<p>Today, the aggregate capitalization of Binance Coin (BNB) and Solana\u2019s SOL stand at 32% versus Ether\u2019s $557 billion.<\/p>\n<p>At the moment, Ether is trading in an ascending channel with a target at $5,000, but bears <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>arently still have reasons to doubt the network\u2019s ability to deliver Eth2 by year-end. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-11\/093d6127-820b-4a71-8757-9611544296dc.png\"><figcaption style=\"text-align: center;\"><em>ETH\/USD price on Kraken. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>This year, Ethereum\u2019s leading use case, decentralized finance (DeFi), has gathered regulators\u2019 attention \u2014 and not in a good way. On Nov. 9, United States Securities and Exchange Commission Commissioner Caroline Crenshaw published her opinion\u00a0in the article titled \u201cDeFi risks, regulations and opportunities.\u201d In it, she mentions that the sector lacks market protections, and she raises concerns about pseudonymity and market manipulation.<\/p>\n<p>On the other hand, the value locked in the Ethereum network\u2019s smart contracts reached a $94 billion all-time high, marking a 42% growth in three months. So, regardless of the competition or the $50 average transaction fee, there\u2019s undoubtedly a growing demand for its DeFi, nonfungible token (NFT), oracle and decentralized marketplaces.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-11\/ebd01868-a622-4423-aca5-3109ccba62fd.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Ethereum network adjusted total value locked in USD. Source: DeBank<\/em><\/figcaption><\/figure>\n<p>What is interesting is even with Ether\u2019s positive price action, which is backed by strong usage metrics, bearish put (sell) options dominate Friday\u2019s $700 million ETH options expiry.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-11\/4be04c14-ecc7-49ab-a36f-3d3d753d87f1.png\"><figcaption style=\"text-align: center;\"><em>Ether options aggregate open interest for Nov. 12. Source: Bybt<\/em><\/figcaption><\/figure>\n<p>At first sight, the $415 million in put (sell) options dominate the weekly expiry by 31% compared with the $285 million in call (buy) instruments. The 0.69 call-to-put ratio is deceptive because the recent rally will likely wipe out most bearish bets.<\/p>\n<p>For example, if Ether\u2019s price remains above $4,700 at 8:00 am UTC on Nov. 12, only $10 million worth of those put (sell) options will be available at the expiry. There is no value in a right to sell Ether at $4,700 if it\u2019s trading above that price.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bears_could_still_tip_the_scale_below_4600\"><\/span>Bears could still tip the scale below $4,600<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Below are the four most likely scenarios that consider the current price levels. In addition, the data shows how many contracts will be available on Nov. 12 for both bulls (call) and bear (put) instruments.<\/p>\n<p>The imbalance favoring each side represents the theoretical profit:<\/p>\n<ul>\n<li><strong>Between $4,500 and $4,600: <\/strong>7,500 calls vs. 13,600 puts. The net result favors bear (put) options by $25 million.<\/li>\n<li><strong>Between $4,600 and $4,700:<\/strong> 12,700 calls vs. 7,300 puts. The net result is $25 million favoring the call (bull) instruments.<\/li>\n<li><strong>Between $4,700 and $4,800:<\/strong> 17,300 calls vs. 2,100 puts. The net result is $75 million favoring the call (bull) instruments.<\/li>\n<li><strong>Above $4,800:<\/strong> 24,300 calls vs. 100 puts. The net result is complete dominance, with bulls profiting $115 million.<\/li>\n<\/ul>\n<p>This raw estimate considers the call options being used in bullish bets and put options exclusively in neutral-to-bearish trades. Unfortunately, this oversimplification disregards more complex investment strategies.<\/p>\n<p>For instance, a trader could have sold a call option, effectively gaining a negative exposure to Ether below a specific price. However, there\u2019s no easy way to estimate this effect.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Ether_price_may_pull_back_but_5000_remains_the_target\"><\/span>Ether price may pull back, but $5,000 remains the target<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>If Ether\u2019s price holds above $4,800 on Nov. 12, bulls will net a significant $115 million. In that sense, for ETH bears, taking a $25 million loss should be considered a victory.<\/p>\n<p>There\u2019s still a chance that bears avoid losses on Nov. 12\u2019s expiry by pressuring Ether\u2019s price below $4,600 on Nov. 12, down a mere 3% from the current $4,750. Would that be enough to reject the ascending channel initiated three weeks ago? Not really, as there\u2019s room for $4,500 without breaking the support level.<\/p>\n<p class=\"post-content__disclaimer\"><em>The views and opinions expressed here are solely those of the <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/noshitcoins\"><em>author<\/em><\/a><em> and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.<\/em><\/p>\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\/ascending-channel-pattern-and-ethereum-options-data-back-traders-s-5k-eth-target\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Ascending channel pattern and Ethereum options data back traders\u2019 $5K ETH target &#8221; Ether (ETH) bulls seem excited by the recent $4,870 all-time high that was hit on Nov. 10. While it was a new high in U.S. dollar terms, ETH is still 51% below June 2017\u2019s price in Bitcoin (BTC) terms. But it\u2019s&#8230;<\/p>\n","protected":false},"author":1,"featured_media":365700,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMTEvNDc5NTFmNDgtYzQ4Ni00OGQ4LTk4YWItNzA3YzMzNGJhNGY3LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74863,74860,75012,82402,74891,81210,74939,74898,75434,73785],"class_list":["post-365699","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-derivatives","tag-ether-price","tag-ethereum","tag-ethereum-options","tag-market-analysis","tag-sec","tag-smart-contracts","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/365699","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=365699"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/365699\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/365700"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=365699"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=365699"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=365699"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}