Why a little less than 1/3 Ethereum traders expect ETH to climb above $2k this Feb.

For the collective cryptocurrency industry, the past 24 hours have been especially rough; a short-term correction has seen assets decline in charts. Ethereum fell to as low as $1732. Although the market was able to rebound at press time, there was a looming fear that the bearish drag was not over.

Ethereum could be getting a bullish drive from the derivatives side of the market, as trades suggested a bullish feeling until the end of February.

ETH Realized Volatility >Implied Volatility since 29th Nov-2020

Source: Skew

According to Skew charts, Ethereum’s realized volatility indicated a positive above Implied Volatility for the first time since November 29th, 2020. Realized Vol surpassing Implied Vol suggested that Ether’s market is currently more volatile than expected. Such a situation may or may not favor Ethereum’s spot prices but other factors indicated an overall positive sentiment.

Source: Skew

As noted in the above chart, Open-Interest on Ethereum Options remained close to its all-time high operation across multiple platforms, with Deribit exhibiting its ATH at press time. Increasing OI has indicated the current value of ETH contracts active in space, and higher OIs can often lead to further price appreciation in a bullish pattern.

30% of the market expects Ethereum to cross $2k 

Source: Skew

According to the Ethereum Likelihood, almost 30% of investors expect the price to grow above $2000 by the end of February. The pattern can also be supported by the fact that the amounts of ETH Options were dominated by Call Options at press time. According to results, by 26 February, 3494 Deribit ETH expected the price to fall by $2240.

Thus, optimistic market sentiment may probably drive Ethereum back over its immediate $1820 resistance in the next few hours, in order to regain the dominant bullish momentum.