The digital asset is now trading above $1,300 for the first time since mid-December 2021.
Ethereum, like Bitcoin, experienced a relief rally that pushed its price to a new three-week high. So far, the digital asset has been able to maintain its gains in the market. However, not everyone is betting on the continued growth of the cryptocurrency, which could end up being a deterrent to the further growth of the digital asset.
Ethereum Whales Fall Short
Chinese journalist Colin Wu, popularly known as Wu Blockchain on Twitter, posted a screenshot showing that Ethereum whales were still very bearish on the digital asset. Wu tweeted that “Recently, there has been a large order of 26,000 ETH put options with a strike price of $400 and an expiration date of Jun 30. Some traders believe this is the tail management behavior of crypto whales. According to @Blofin_Official.” This is a decrease of more than 200% from the current price of the asset.
The Ethereum price has already seen a recovery since this trade was made. But with such a long runway and expected selling pressure to come from Shanghai’s upgrade and withdrawal capabilities for staked ETH, there is still a chance that the digital asset could hit this price.
Not Everyone is Bearish on ETH
Despite such a large short position on a possible Atheneum price decline, not everyone is bearish on the asset. One Chinese miner, Jiang Zhuoer, took to social media to share his bullish runs on the cryptocurrency. He tweeted that “the price will ultimately be determined by the capital, and the deflation of ETH is very favorable to capital and will be reflected on the price. From this data, it can be concluded that the ETH bull market will start in a spiral deflationary mode.”
Zhuoer says that he expects ETH to lead the 2023 market bull run. In fact, the miner explains that ETH will actually start moving before BTC. He also predicts that Ethereum will soon break out of its six-month consolidation.
Regarding ETH, the digital asset has been doing well as the new week progresses. It is already up 3.80% in the last day, and its gains on the 7-day chart have exceeded 8%. This price rise sees it currently trading at a price of $1,311, with indicators pointing towards further upside potential, at least in the short term, as it moves above its 50-day moving average.
The next significant resistance now lies at $1,350, where the bears are resisting once again. This was also the local peak before the market crash on December 14, so this is an important point to beat if ETH is to see further gains.
By Audy Castaneda
