Crypto Market Shifts Focus to Altcoins as Ethereum Hits New All-Time High of $1,565 Feb 3, 2021 Feb 3, 2021 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Bitcoin NewsFebruary 3, 2021 by Kelly Cromley

Crypto Market Shifts Focus to Altcoins as Ethereum Hits New All-Time High of $1,565

Ethereum, the most popular blockchain for hosting smart contracts, saw its native crypto Ether (ETH) record new all-time high of $1,565, reflecting a gain of 11% in the last 24 hours.

Interestingly, in the crypto derivatives market, a lot new ETH call options were opened, implying that traders are expecting the cryptocurrency to rally higher in the days ahead.

While a put option is an equivalent of sell order and call option is an equivalent of buy order, an increase in the number of call option contracts indicates that traders have a bullish view of an asset.

Before Ethereum breached previous high, analysts at Laevitas, a data analysis platform, pointed out that 80% of Deribit’s ETH volume is composed of calls.

On the basis of changes in volume, Laevitas analysts forecast that ETH will rise further. They stated:

In a matter of hours, Ether breached $1,500, representing a fresh all-time high.

During the course of last week, Ether came near all-time high several time, but retraced every time and put the next support level under test.

As the price did not retrace strongly after testing the earlier all-time peak implies that the selling pressure has decreased. Therefore, on the fourth-attempt, the resistance level was broken.

In this regard, Su Zhu, CEO of Three Arrows Capital, stated that Ether’s buying momentum is so high that even if a crypto investor had sold BTH to ETH at $41,000 level, the investor would have profited more than selling against the BTC/USD pair.

Traders state that if the daily candle in Ether price chart closes over $1,440, it would re-affirm the bullish uptrend. A trader with nickname “Trader Koz” opined:

Academics at IntoTheBlock echoed a similar view. After Ether went past $1,500 for the first time, academics stated that on-chain activity has increased to January 2018 level.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.