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Ethereum: USD/ETH (ETH=) has been placed on a March 2020 call option with a strike at $600

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Ethereum: USD/ETH (ETH=) has been placed on a March 2020 call option with a strike at $600

More than $1.5 million has been placed on an Ethereum March 2020 call option with strikes at both $520 and $600.

The bet means that the trader, or group of traders, believes Ethereum will surge by more than 250% in the next six weeks.

Ethereum famously rallied to an astonishing all-time high of $1,425 in the 2017 bull market. However, since then, it has made consistently lower yearly highs of $831 and $370.

ETH is currently being confronted with the 200 exponential moving average (EMA) on the daily chart, which is expected to act as a bitter point of resistance over the coming days.

For Ethereum to rally by 250% in the coming six weeks, it needs to rapidly cycle through levels of resistance at $214, $247, $284, and $302 before retesting 2019’s yearly high.

A lot will also depend on the the anticipated interest in Bitcoin’s halving event, which will see block rewards for miners slashed to 6.25 BTC per block in May.

Previous Bitcoin halving events have preceded rallies to new all-time highs, with miners being incentivised to drive up the price of BTC in order for the industry to remain profitable.

If Bitcoin does in fact see a price hike leading up to the halving, it’s likely that major cryptocurrencies like Ethereum will follow. In which case, the $600 price target may not be far off the mark.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 157.88.

The projected upper bound is: 193.29.

The projected lower bound is: 163.11.

The projected closing price is: 178.20.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 92.9812. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 10 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 69.02. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 10 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 153.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 10 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 5 period(s) ago.

Rex Takasugi – TD Profile

FOREX ETH= closed up 5.830 at 177.560. Volume was 55% below average (consolidating) and Bollinger Bands were 20% wider than normal.

Open     High      Low     Close     Volume___
171.680 177.670 171.680 177.560 31,065
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 167.67 145.03 175.46
Volatility: 38 66 72
Volume: 87,475 78,002 67,718

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FOREX ETH= is currently 1.2% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of ETH= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on ETH= and have had this outlook for the last 23 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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