AMBCrypto - 3/25/2021 3:01:29 PM - GMT (+0 )
Disclaimer: The findings of the following article are the sole opinions of the writer and should not be taken as investment advice
Bitcoin’s Options expiry on Friday, the 26th of March, would see the point of max pain at $44,000. This does not necessitate a move, however, after expiry, the potential to gravitate lower would be lifted.
At the time of writing, Bitcoin was trading at $50,600 and still falling. What’s more, Ethereum, the world’s largest altcoin, also saw heavy bearish pressure that pushed the price down to $1,562 at press time.
Ethereum 1-hour chart
A range from $1,730-$1,850 can be seen on the charts (cyan), with some deviation above it that was still unable to climb to test the $1,950-$2,050 region of supply, showing that sellers were able to assert their presence even in the $1,900 region two weeks back. In fact, they have only grown in strength since.
The past few days saw ETH lose the short-term range established, with the alt finding some support at $1,550 in the past few hours.
Furthermore, the altcoin’s technical indicators projected yet another drop in the near-term.
The day before, the RSI climbed hopefully above neutral 50, but this was only a short-term bounce and since then, the RSI has dropped swiftly alongside the price.
The OBV also showed heavy selling volume in recent hours. The 23.6% retracement level at $1,580 and the other level of horizontal support at $1,550 will be important to the price in the coming hours.
Bitcoin slipped under the $51k mark and further losses could be seen across the market, with Ether being no exception. The next level of support can be found at $1,450, and it would be a good idea to avoid buying till the market settles down.
There are $1.15 billion worth of ETH Options expiring on the 26th, and this has already seen a significant ETH correction that could have some more fuel left in the tank. A move under $1,550 is likely to materialize and when it does, the next buying opportunity would lie at the $1,450-$1,420 zone.
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