Why is Ethereum price stuck below $3,800?

Ethereum price action recently exploded higher following news of the approval of the Ethereum Spot ETF. The ETH/BTC price ratio is 0.054, which means a 22% gain from Ethereum. THE ETH Price Friday was $3,762, representing a 0.7% decrease over the past 24 hours and a 0.9% decrease over the past 7 days. Bitcoin Price on the other hand, is trading at $68,293, an increase of 0.3%.

Ethereum Price Analysis: Is an inbound retracement before a pump higher?

ETH/BTC Price Chart

The price of ETH is strong against Bitcoin, although the general trend is down. The ETH/BTC price ratio has been moving below the 50-day and 200-day simple moving averages (SMA) for the past 482 days. This means that Bitcoin was gaining ground Ethereum.

However, following the approval of the Ethereum Spot ETF, Ethereum has gained ground over Bitcoin. Ether is currently above both of these moving average indicators. The action is also taking place in a massive bull flag market structure on the daily time frame. If the chart pattern is confirmed, a 22%-sized rally could break out to reach 0.07 BTC, levels not seen since July 2023.

In a reverse scenario, Ethereum price could find support around 0.051 BTC and 0.053 BTC. This level is resistance turned support and has already been tested three times.

The price of Bitcoin is approaching the end of a symmetrical triangle on the 4-hour chart. Symmetrical triangles can break out on either side but generally follow the direction of the previous trend, upwards in the case of Bitcoin. Bitcoin price is also moving above the 200-day SMA, which is bullish. The main resistance levels to look for in the event of a bullish breakout would be $71,600, $74,724, and $77,490. Conversely, the main support areas would be around $66,200, $65,700, and $62,900.

This week, Blackrock submitted an S-1 declaration for its Spot Ethereum ETFa move that can result in bullish sentiment for the asset.

On the other hand, Blackrock’s BTC stake is quickly closing the gap compared to Grayscale’s. As of May 15, 2024, Blackrock was only 15,000 BTC away from closing this gap. This number may be lower today. Separately, Blackrock’s Bitcoin ETF also became the fastest ETF to reach $20 billion (137 days), beating JEPI (985 days).

$8.12 Billion BTC and ETH Options Set to Expire Today

On May 31, 2024, as many as 69,000 Bitcoin options with a notional value of $4.7 billion are set to expire on Deribit. The put-call ratio is 0.61, meaning there has been an increase in open interest on calls recently as everyone prepares for the monthly expiration. The maximum pain point is $66,000, which could cause market stress.

As for Ethereum, there are approximately 354,000 contracts with a notional value of $1.5 billion expiring on the same day. The put-call ratio for Ethereum is 0.59, which suggests a higher concentration of call options, indicating bullish sentiment among traders. Expiring options could cause prices to fall as traders and investors adjust to the situation.

Conclusion

Ethereum price surged following news of the approval of the Ethereum Spot ETF, with the ETH/BTC price ratio now at 0.054, marking a 22% gain for Ethereum. Despite recent minor declines, Ethereum is showing strength against Bitcoin, surpassing key moving averages and forming a bullish market structure.

If this trend continues, Ethereum could see another 22% rise. With BlackRock’s recent filing of a Spot Ethereum ETF and the expiration of large BTC and ETH options, the market is bracing for volatility. Expiring options could cause prices to fall, but overall sentiment appears optimistic as investors navigate these developments.

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