Ethereum, like Bitcoin, experienced a relief rally that pushed its price to a new three-week high. The digital asset is now trading above $1,300 for the first time since mid-December 2021 and has been able to sustain its gains in the market thus far. However, not everyone is betting on the continued growth of the cryptocurrency, which could end up being a deterrent to further growth of the digital asset.
Ethereum whales fall short
Chinese journalist Colin Wu, popularly known as Wu Blockchain on Twitter, posted a screenshot showing that ethereum whales were still very bearish on the digital asset. On one hand, there were 26,000 put options for the cryptocurrency at a strike price of $400. This is a decrease of more than 200% from the current price of the asset.
Traders placed on Saturday, December 7, according to the photo, showing high conviction of an expected price drop in the coming months. These options also expired on June 30, giving them a five-month runway to reach this price.
Recently, there has been a large put option order of 26,000 ETH with a strike price of $400 and an expiration date of June 30. Some traders believe that this is the tail management behavior of crypto whales. According to @Blofin_Official pic.twitter.com/VmYC44939h
— Wu Blockchain (@WuBlockchain) January 7, 2023
The Ethereum price has already seen a recovery since this trade was made. But with such a long runway and expected selling pressure to come from Shanghai’s upgrade and withdrawal capabilities for staked ETH, there is still a chance the digital asset could hit this price.
ETH at $1,319 | Source: ETHUSD on TradingView.com
Not everyone is bearish on ETH
Despite such a large short position on a possible Atheneum price decline, not everyone is bearish on the asset. A Chinese miner, Jiang Zhuoer, took to social media to Share their bullish runs of the cryptocurrency.
Zhuoer says that he expects ETH to lead the 2023 market bull run. In fact, the miner explains that ETH will actually start moving before BTC. He also predicts that Ethereum will soon break out of its six-month consolidation.
11/ hope #ethereal (ETH) to start rising before #Bitcoin (BTC) as the leader of the next bull market. Should this happen between March and May 2023, the ETH price would be permanently out of the current lower range.
— Jiang Zhuoer BTC.TOP (@JiangZhuoer) January 9, 2023
As for ETH, the digital asset has been doing well as the new week progresses. It is already up 3.80% in the last day, and its gains on the 7-day chart have exceeded 8%. This price rise sees it currently trading at a price of $1,311 with indicators pointing towards further upside potential, at least in the short term, as it moves above its 50-day moving average.
The next significant resistance now lies at $1,350, where the bears are resisting once again. This was also the local peak before the market crash on December 14, so this is an important point to beat if ETH is to see more gains.
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This post Ethereum hits a new three-week high above $1,300, but will the rally last?
was published first on https://newsbtc.com/analysis/eth/ethereum-reaches-new-three-week-high/