- ETH hit a hurdle near $2700 after recovering in October.
- The options market estimates that ETH is less likely to reach $3,000 before the US elections.
Ethereum (ETH) After reversing losses in the first half of October, it recovered to $2.6K. The largest altcoin recorded a recovery gain of around 12% after rising from $2.3K to over $2.6K.
At press time, ETH was worth $2,614, but has hit a major hurdle below $2,700.
Ethereum price prediction
Since October 9, ETH has recorded increased capital inflows, as evidenced by the rise in Chaikin Money Flow. However, indicators have eased over the past two days, suggesting a slight decline in inflows.
This could derail ETH’s strong move above the hurdle and supply zone (shown in red) that doubles as a bearish order block. The supply zone has also joined the trendline resistance (white dotted line).
This means that a roadblock could trigger a price rejection against the 50-day exponential moving average (EMA) at $2.5K (blue line).
However, if Bitcoin (BTC) continues its strength above $68,000, ETH may attempt to overcome the hurdle. Then you can put in an additional 8% once ETH reaches $2.9K.
Option data…
That is, depending on the options data On Deribit, ETH may not see a strong breakout in October. The options market was less optimistic about ETH rising 6% to $3,000 before the end of the month.
Conversely, on November 8th, right after the US election, the probability of $3,000 per ETH was 21%.
Put differently, a strong move for ETH above $3,000 may only be possible after the US elections, as the next administration will decide on DeFi regulation.
Meanwhile, the 8% gain this week added more than 220,000 ETH to open interest on the Binance exchange.
While this represents a bullish bet, it does not indicate future price direction for ETH given the rising price and increasing spot demand (CVD).
Read Ethereum (ETH) price prediction for 2024-2025
However, high leverage means a high level of liquidation risk, especially if ETH price moves lower and sells off harder.
Therefore, support at $2300, 50-day EMA and hurdles could be the key levels of interest in the near term.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.