Ethereum price retreats as the put/call ratio edges upwards

1671567841115 d4b0c512 873d 4bab a6bb efb602d5b44e
1671567841115 d4b0c512 873d 4bab a6bb efb602d5b44e
Bybit


The spectacular crypto comeback has stalled following a series of weak corporate earnings from the United Stats. Ethereum pulled back to $1,500 on Thursday as data showed that the put/call ratio was heading higher. It has fallen by over 5.90% from the highest point this year.

Put and call ratio slips

The options market is an important one across all asset classes, including cryptocurrencies, stocks, and commodities. It involves placing put-and-call trades on an asset. A call gives the trader the right to buy an asset while a put gives them the right to sell.

The put to call ratio is an essential tool that traders and investors use to predict whether an asset will rise or not. That is why it is an important part of the fear and greed index. 

CryptoSignals

Data compiled by The Block shows that Ethereum’s put/call ratio has edged upward slightly in the past few days. It has risen from 0.24 on January 4 to a high of 0.3. Historically, a lower ratio is usually preferred since it means that there are more buyers in the options market. Still, it should be noted that The Block’s data comes only from Deribit and does not include other exchanges.

Meanwhile, another data by CoinGlass shows that the number of short liquidations in key exchanges rose to the highest point in months on January 15. Liquidations have continued but at a slower pace since then. However, at the same time, long liquidations have been rising. On Wednesday, they rose to the highest level since December 16 of last year.

Ethereum price retreats as the put/call ratio edges upwards

The main reasons for these liquidations is the weak financial results by companies like Goldman Sachs and JP Morgan. Some of these firms have warned about a recession and announced significant job cuts. Microsoft is laying off over 10,000 people. 

Ethereum price forecast

Ethereum price retreats as the put/call ratio edges upwards

ETH/USD chart by TradingView

Ethereum has stumbled as put and call ratio and long liquidations rise. This stumbling happened as the coin reached a high of $1,612, the highest point since November. It has moved slightly below the descending trendline shown in purple. 

At the same time, it has struggled moving above the key point at $1,667, the highest point on November 4. Therefore, I still believe that the outlook for Ethereum is still bullish, with the next key point to watch being at $2,000 as I wrote in this article.

How to buy Ethereum

Oanda

OANDA is the trusted name for Forex and CFD trading. Since 1997 OANDA has established a reputation for fair and transparent pricing and responsive customer service. Easy account opening process.

Buy ETH with Oanda today

Disclaimer

Pacific Union

Since being founded in 2015, Pacific Union has grown into a world-leading online broker. We offer 200+ products, whilst delivering an innovative trading facility for assets such as forex, indices, commodities, shares and cryptocurrencies. As a service-focused, global online trading brokerage, we provide multilingual services to 120 countries and regions.

Buy ETH with Pacific Union today

Disclaimer

Source link By Crispus Nyaga

Blockonomics is a decentralized and permissionless bitcoin payment solution

Be the first to comment

Leave a Reply

Your email address will not be published.


*