#ETHBreaks4000
The Key Strike Price That Could Decide the Next Big Move
Ethereum has yet to reach $4,000 after surging 40%+ in May and July.
Since the altcoin hasn't cleared this level,
Ethereum must beat it to continue its climb.
One market analyst attributes the altcoin's failure to crack $4,000 to hedge funds,
who have a special incentive in keeping the price low.
Trader and market expert revealed another perspective to Ethereum's $4,000 price beatdown in an X article.
This mysterious price tag is the only obstacle to ETH shattering its $4,800 top from 2021, and its continued trading below it may be purposeful.
Goodman writes about options traders and hedge funds they gamble against.
As long as hedge funds remain short Ethereum, they must restrict the price from recovering $4,000 to maintain their profits.
Professional traders or hedge funds write options as ‘sellers’ and get a premium.
Options purchasers pay a premium to sellers because they gamble on Ethereum rising beyond $4,000
. Every time Ethereum reaches $4,000, it's battered down so hedge funders can keep profiting off buyer premiums.
If Ethereum crosses $4,000, hedge firms will lose money and options purchasers will profit.
The crypto trader argues why options purchasers profit and hedge funds lose when ETH prices rise.
Since hedge funds short Ethereum, every time it approaches $4,000, there is a severe drop.
Goodman highlighted that hedge firms have profited from keeping Ethereum below $4,000. Each time the cryptocurrency approaches $4,000, the odds of breaching above it increase.
Ethereum's $4,000 price break is positive long-term.
“Strong resistance kicks in at $4000, so the price could really fly if it beats all the resistance in the early 4000s,”.