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Ascending channel pattern and Ethereum options data back traders’ $5K ETH target

Published 11/11/2021, 02:56 PM
Updated 11/12/2021, 05:00 PM

Ether (ETH) bulls seem excited by the recent $4,870 all-time high that was hit on Nov. 10. While it was a new high in U.S. dollar terms, ETH is still 51% below June 2017’s price in Bitcoin (BTC) terms. But it’s entirely possible that the 0.155 BTC level reached in the previous cycle reflected the overzealous expectations that were rampant during the initial coin offering frenzy.

The Ethereum network’s success has caused congestion and high fees, bringing the competition closer. For example, in mid-2017, the leading “competitors” were Ethereum Classic (ETC) and NEM (XEM). Combined, those represented a mere 13% of Ether’s $37 billion market capitalization.

ETH/USD price on Kraken. Source: TradingView
Ethereum network adjusted total value locked in USD. Source: DeBank
Ether options aggregate open interest for Nov. 12. Source: Bybt

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