Key Points
- Ethereum (ETH) faces a roadblock near $2700, despite October recovery.
- Options market predicts lower chances of ETH reaching $3K before US elections.
After a recovery in October, Ethereum (ETH) hit a stumbling block near the $2700 mark.
The leading altcoin managed to reverse losses from the first half of October, climbing back to $2.6K.
Ethereum’s Price Prediction
Since October 9, Ethereum has seen increased capital inflows.
However, these inflows have slightly tapered off in the past two days, which could potentially disrupt Ethereum’s progress above the roadblock.
The roadblock also doubles as a bearish order block and supply zone, which could trigger a price rejection towards the 50-day Exponential Moving Average (EMA) at $2.5K.
Nonetheless, if Bitcoin (BTC) continues its bullish streak above $68K, Ethereum could potentially overcome this hurdle and gain an extra 8%, hitting $2.9K.
Options Data Analysis
According to options data from Deribit, the market is less optimistic about Ethereum crossing the $3K mark before the end of October, with only a 6% chance.
However, the odds of Ethereum reaching $3K increase to 21% by November 8, just after the US elections.
This suggests that a strong move above $3K for Ethereum may only be possible after the US elections, as the next administration’s stance on DeFi regulation will be crucial.
This week, over 220K ETH of Open Interest was added on the Binance exchange, indicating bullish bets.
However, this doesn’t necessarily indicate a future price direction for Ethereum.
High leverage equates to high levels of liquidation risk, especially if Ethereum’s price drops significantly.
Therefore, the support at $2300, the 50-day EMA, and the roadblock could be key interest levels in the short term.
Please note, the information presented does not constitute financial, investment, trading, or other types of advice.
