Key Points
- Ethereum’s price shows resilience amidst FUD, with a 12% recovery and the potential for a bullish reversal.
- Option data suggests a lower likelihood of Ethereum crossing $3K before the U.S. elections in November.
Ethereum (ETH) has proven to be robust in the face of widespread Fear, Uncertainty, and Doubt (FUD).
The leading altcoin has seen a 12% recovery, bouncing back from a low of $2.3K to reach a high of $2.6K.
Potential for Bullish Reversal
Peter Brandt has suggested that Ethereum could potentially see a significant price increase.
This is due to the appearance of an inverse head-shoulder pattern, which is typically a bullish reversal formation.
A breakout above the neckline resistance ($2.7K) in this pattern could reach a target equivalent to the height between the head and neckline.
For Ethereum, this could potentially mean a price around $3.3K.
This target aligns with the bearish Order Block (OB) and the resistance level marked white.
However, Ethereum’s demand remains relatively weak, which may delay this bullish projection.
The Coinbase Premium Index, which measures U.S. investor interest in Ethereum, has been in negative territory since late September.
High U.S. demand has historically corresponded with a strong uptrend for Ethereum.
It’s uncertain whether the recent roadmap from Vitalik Buterin for Ethereum will shift market sentiment.
Options Market Less Optimistic
Despite this potential for a bullish reversal, the options market is less optimistic about Ethereum crossing the $3K mark before the U.S. elections in November.
Data from Deribit suggests only an 8.6% chance of Ethereum hitting $3K by the end of October, compared to a 31% chance by November.
In essence, the options data indicates a higher likelihood of an Ethereum breakout following the U.S. elections.
