Ethereum

Convergence

Bitcoin

Terra

Propel

<img width="1200" height="578" src="https://coingape.com/wp-content/uploads/2024/01/31UxctCK-e1705858632737.png" class="attachment-full size-full wp-post-image" alt="" decoding="async" style="float:right; margin:0 0 10px 10px;">
The cryptocurrency market is currently on the edge, with increasing concerns that <a href="https://coingape.com/grayscale-ceo-challenges-bitcoin-etf-rivals-lauds-1-5-fee-amid-sec-approvals/">Grayscale might persist in selling its Bitcoin</a> holdings. This fear stems from investors shedding shares of the GBTC ETF, sparking a wider market sell-off. Amid this downturn, the second-largest cryptocurrency Ethereum formed a local top at $2700 and entered a new correction phase.&nbsp; 
Within a fortnight, the ETH price is down 9% to currently trading at $2467. Moreover, a notable development in Ethereum’s Implied volatility and Option writing for coming months projects that future traders are expecting a prolonged correction for this asset. 
<h2 id="b-eth-price-analysis-expanding-channel-pattern-sets-dive-below-2400-b">ETH Price Analysis: Expanding Channel Pattern Sets Dive Below $2400</h2> 
<ul> 
 <li style="font-weight: 400;" aria-level="1">The formation of an expanding channel pattern reflects increased uncertainty among market participants.</li> 
 <li style="font-weight: 400;" aria-level="1">A healthy retracement in ETH price keeps the overall trend bullish</li> 
 <li style="font-weight: 400;" aria-level="1">The intraday trading volume in Ether is $4.63 Billion, indicating a 39% loss.</li> 
</ul> 
<figure style="width: 100%" class="wp-caption alignnone">
 <img decoding="async" src="https://s3.tradingview.com/snapshots/3/31UxctCK.png" alt="Ethereum Price Prediction" width="1946" height="937">
 <figcaption class="wp-caption-text">
 Ethereum Price Prediction| TradingView Chart
 </figcaption>
</figure> 
The last two months’ recovery in <a href="https://coingape.com/price/ethereum/">Ethereum price</a> can be followed using two diverging trendlines of an expanding channel pattern. Amid this rally, the coin price has showcased several rebounds from the two trendlines indicating the traders have taken a strict on the pattern structure. 
On January 12th, the ETH price witnessed its latest reversal from the upper trendline, which initiated a new bear cycle within the channel. By the press time, the ETH price is trading at $2469, trying to hold above local support of $2400. 
<blockquote>
 As per the recent data from Deribit Insight, <a href="https://coingape.com/bitcoin-and-ethereum-price-displays-conflicting-options-data/?utm_source=24hrsupdateall">Ethereum’s implied volatility (IV)</a>, as measured by the Dvol proxy over the past week, experienced a significant decline, dropping from 64% to 47%, largely driven by structured call selling in both markets.
</blockquote> 
<figure id="attachment_175745" aria-describedby="caption-attachment-175745" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class="size-full wp-image-175745" src="https://coingape.com/wp-content/uploads/2024/01/GETN97SWYAAH2W-.jpeg" alt="" width="1504" height="911" srcset="https://coingape.com/wp-content/uploads/2024/01/GETN97SWYAAH2W-.jpeg 1504w, https://coingape.com/wp-content/uploads/2024/01/GETN97SWYAAH2W--300x182.jpeg 300w, https://coingape.com/wp-content/uploads/2024/01/GETN97SWYAAH2W--1224x741.jpeg 1224w, https://coingape.com/wp-content/uploads/2024/01/GETN97SWYAAH2W--768x465.jpeg 768w, https://coingape.com/wp-content/uploads/2024/01/GETN97SWYAAH2W--150x91.jpeg 150w" sizes="(max-width: 1504px) 100vw, 1504px">
 <figcaption id="caption-attachment-175745" class="wp-caption-text">
 Source| Deribit Insights
 </figcaption>
</figure> 
This indicates a change in strategy, with some investors possibly exiting long positions or engaging in overwriting strategies against their Ethereum holdings. Key transactions include the selling of 45,000 February calls with a strike price of $2,700, and 28,000 March calls at a $2,900 strike price. Additionally, there was a strategic move where 25,000 January $2,600 calls were covered, followed by the selling of April calls at a $2,900 strike. 
Such Heavy Call selling at the aforementioned psychological level indicates the option traders believe the Ethereum coin is less likely to surge higher in coming months but rather remains in a sideways or correction trend. 
<h2 id="b-will-eth-price-correction-hit-2000-b">Will ETH Price Correction Hit $2000?</h2> 
If the broader market continues to fuel selling pressure, the Ethereum price is likely to break the immediate support of $2400. The post-breakdown fall would tumble the price another 6.5% to retest the channel’s lower trendline at $2300. 
The rising trendline has acted as dynamic support for over two months and its possible breakdown intensifies the supply pressure. The extended downfall may plunge the ETH price to following support of $2140, and $1920. 
<ul> 
 <li aria-level="1">Moving Average Convergence Divergence: A bearish crossover between <a href="https://coingape.com/glossary/macd-moving-average-convergence-divergnece/">MACD</a> and the signal line reflects an active correction sentiment in the market.</li> 
 <li aria-level="1">Bollinger Band: The upper boundary of the Bollinger band going flat reflects a weakening in bullish momentum.</li> 
</ul> 
<h3 id="related-articles">Related Articles:</h3> 
<ul> 
 <li><a href="https://coingape.com/ethereum-eth-upside-bitcoin-btc-max-pain-ahead-analyst/">Ethereum (ETH) Upside, Bitcoin (BTC) ‘Max Pain’ Ahead: Analyst</a></li> 
 <li><a href="https://coingape.com/ethereum-dencun-upgrade-here-are-2-crucial-dates-to-watch/">Ethereum Dencun Upgrade: Here are 2 Crucial Dates to Watch</a></li> 
 <li><a href="https://coingape.com/crypto-headlines-of-the-week-bitcoin-etfs-advance-binance-terra-propel-speculations/">Crypto Headlines of the Week: Bitcoin ETFs Advance, Binance &amp; Terra Propel Speculations</a></li> 
</ul> 
The post <a href="https://coingape.com/markets/ethereum-price-dive-below-2400/">Will ETH Price Hit $2000? Expanding Channel Pattern Sets Dive Below $2400</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Will ETH Price Hit $2000? Expanding Channel Pattern Sets Dive Below $2400

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