Ethereum price retreats as the put/call ratio edges upwards

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The spectacular crypto comeback has come to a halt after a series of weak corporate earnings from the United States. Ethereum It returned to $1,500 on Thursday as data showed the put/call ratio was turning higher. It has fallen more than 5.90% from this year’s high.

put and call ratio slip

The options market is important in all asset classes including cryptocurrencies, stocks and commodities. It involves entering into a put-and-call trade on an asset. A call gives the trader the right to buy assets while a put gives the right to sell them.

The Put to Call ratio is an essential tool used by traders and investors to predict whether an asset will go up or not. Hence it is an important part of the Fear and Greed Index.

Data compiled by The Block shows that Ethereum’s put/call ratio Gush Up a bit in the last few days. It has increased from 0.24 on January 4 to a high of 0.3. Historically, a lower ratio is generally preferred because it means there are more buyers in the options market. Nevertheless, it should be noted that the data for the block only comes from Deribit and does not include other exchanges.

Meanwhile, another data from CoinGlass shows that Number Short liquidations on major exchanges rose to the highest point in months on January 15. Liquidation has continued but at a slower pace since then. However, at the same time, long liquidations are on the rise. On Wednesday it reached the highest level since December 16 last year.

The main reason for these liquidations is the poor financial results of companies such as Goldman Sachs and JPMorgan. Some of these firms have warned of a recession and announced significant job cuts. Microsoft is laying off more than 10,000 people.

Ethereum Price Forecast

ETH/USD Chart by TradingView

Ethereum has faltered as put and call ratios and long liquidations increase. The stumbling block happened when the coin reached a high of $1,612, its highest point since November. It has moved slightly below the descending trend line shown in purple.

Also, it struggled to climb above the key $1,667 level, which was the highest point on Nov 4. Therefore, I still believe that the outlook for Ethereum remains bullish, with the next major point to be seen at $2,000 as I wrote. In this Article,

how to buy ethereum


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