Ethereum, like bitcoin, saw a relief rally that pushed the price to a new three-week high. The digital asset is currently trading above $1,300 for the first time since mid-December 2021, and so far, it has been able to hold its gains in the market. However, not everyone is betting on the continued growth of cryptocurrency, which can end up being a deterrent to further rise for digital assets.
Pope Ethereum Go Short
Chinese journalist Colin Wu, better known as Wu Blockchain on Twitter posted an image showing that the ethereum whale is still very bearish on the digital asset. For one, there are 26,000 put options for the cryptocurrency with a strike price of $400. This is a drop of more than 200% from the current asset price.
The trader was placed on Saturday, December 7, according to the photo, showing high confidence in the expected price decline in the coming months. The option will also expire on June 30, giving it a five-month runway to reach that price.
Recently, there has been a large order of 26,000 ETH put options with a strike price of $400 and an expiration date of June 30. Some traders believe this is the behavior of crypto whale tail management. according to @Blofin_Official pic.twitter.com/VmYC44939h
— Wu Blockchain (@WuBlockchain) January 7, 2023
The Ethereum price has seen a recovery since this trade was placed. But with a long runway and selling pressure expected to come from the Shanghai upgrade and the ability to withdraw for purchased ETH, there is still a chance that the digital asset will hit the price.
ETH at $1,319 | Source: ETHUSD on TradingView.com
Not Everyone Is Bearish On ETH
Despite the large position of the potential derivative of the atheneum’s price, not all are bearish on the asset. One Chinese miner Jiang Zhuoer took to social media to show bullish execution of cryptocurrency.
Zhuoer said that he expects ETH to lead the bull market in 2023. In fact, miners explained that ETH will actually start to move before BTC. He also predicted that ethereum will soon break out of its six-month consolidation.
11 / I expect #Ethereum (ETH) to start rising earlier than #Bitcoin (BTC) is the next bull market leader. This should happen between March and May 2023, the price of ETH will remain 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 rolls around. It has risen 3.80% in the last day, and the gain on the 7-day chart has risen above 8%. This price increase sees it currently trading at a price of $1,311 with indicators heading higher, at least for the short term, as it is moving above its 50-day moving average.
The next important resistance is now at $1,350 where the bears are reestablishing. This was also the local peak before the December 14th market crash, so this is an important point to beat if ETH is to gain more.