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After making a new local high at $ 476, Ethereum’s price has been lukewarm for the past week. With a weekly change of 0.96%, Ethereum could be indicative of a correction period with Bitcoin, but broader market sentiment has remained the polar opposite of price.
Source: Skew
According to recent data from Skew, 13,184 ETH are currently locked into call buy contracts with nearly 5612 ETH which are expected to hit or exceed $ 480. By comparison, only 1956 ETH was in put sell order for a retracement of up to $ 440. Such a trend is extremely rare for a week in which the price of Ethereum showed a change of 0.96%.
While the Ethereum price chart suggested a bearish turn, Ethereum Options were completely trying to flip the narrative. The probability index for ETH was also quite positive.
Source: Skew
According to the chart above, 19% of the options market expected Ethereum to hit $ 500 before the end of November, and a significant 29% expected a retest at $ 480.
Are Multiple Factors Currently Keeping Ethereum Green?
In the past, Ethereum was extremely responsive to the collective market, driven primarily by Bitcoin. However, DeFi’s impact made a big difference in 2020. DeFi’s market cap alone was close to $ 17 billion and these DeFi tokens were making another comeback.
Second @ThinkingUSD, a well-known market analyst, the return of DeFi could help Ethereum maintain its rally during the next trading session. He has declared,
“DeFi looks neutral to bullish and I think ETH looks poised for a 471 tap resistance. Added to longs. I’ll add more on 471 breaks and also hold. “
Low Bitcoin correlation since September
Source: Coinmetrics
After a consistently strong correlation during the August rally, Ethereum is currently at a low correlation of the year with Bitcoin. While it may have played behind in October, it could help Ethereum reach its rally in the future.
For the first time in the digital asset industry, core assets are becoming increasingly responsible for their own price hikes. Ethereum 2.0 is currently creating its own niche in terms of organically taking the project in a new direction.
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