Ethereum is getting closer to $ 4,000: is it finally the long-awaited take-off?

After several attempts to break through the $ 3,645 resistance line, Ethereum is finally overcoming this challenge and sending a pretty clear signal to breach its multi-year ATH of $ 4,350.

ETH’s price rose 8% intraday to rise to $ 3,828. A level that it has not reached since September 6, the day before the massive well-off in September. This performance marks a real break with the consolidation of the Ethereum range between $ 3400- $ 3600.

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However, the second largest crypto in the market is missing nearly 12% to hit its ATH. As amazing as it may be, in 12 days the “Altair” update will be implemented in the Ethereum network. The bullish pattern is imminent for the next few days.

One last resistance to overcome before ATH

Ethereum is getting closer to $ 4,000: is it finally the long-awaited take-off?

$ 3,924 is the last resistance line Ethereum needs to cross to hit its highs. At the chart level, the uptrend solidifies a bit more as the crypto price breaks its 20 and 200 day moving averages with an RSI on an upward wedge.

The MACD is also sending an important technical signal because the trend line (blue) exceeds the signal line (red) in daily data. Another fairly important finding with the two lines of the MACD, they are recovering from the bearish trough of September 29 to draw a bullish pattern.

At a fundamental level, Ethereum can count on the implementation of its new update (Altair) which paves the way for Ethereum 2.0. Migration is essential for the network because competitors are endlessly providing solutions to deal with scalability problems. We think in particular of Polokadot who announced the launch of parachains on his protocol by November 11. Binance also intends to put $ 1 billion to finance the BSC ecosystem.

The options market is paving the way for bulls

This Friday, $ 385 million worth of Ethereum options contracts will mature. The bulls consolidate their lead with this new rally of 8% intraday. The bull advantage is so huge that if ETH can keep above $ 3,800 there will be hardly any sales contracts left.

In terms of profits, Marcel Pechman, Contributor for Cointelegraph, summarized the profitability scenario between calls and puts on options contracts:

Between $ 3600 – $ 3800: The bulls will make a profit of $ 74 million because it will have 15,400 buy contracts versus 600 sell cons.

If ETH exceeds $ 3,800: it will have no sales contracts for 27,450 buy contracts, the bulls will make a profit of $ 104 million.

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