Investors are bullish on Ethereum because the industry awaits the launch of Spot Ethereum ETFs. This sentiment is relayed through the recent expiration of Ethereum options contracts and the put-call ratio. In response to data, over 200,000 ETH options recently expired, and the crypto community eagerly awaits the direction of the Ethereum price.
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Notably, the vast majority of the expiring ETH options are call options, meaning buyers are betting the value will rise. At the identical time, the put-call ratio is at 0.36. This low value means market participants are currently buying more call options than put options.
Options Show Surging Ethereum Demand
Options are contracts that give buyers the correct, but not the duty, to purchase or sell an asset at a particular price on or before a certain date. If the Ethereum price is above the strike price of those options at expiry, buyers will likely exercise their right to purchase ETH at a reduction, which might drive the value up further.
In response to data, participants in the choices market are betting on Ethereum’s price increase despite the recent stagnation around $3,500. Particularly, the info shows that 200,000 ETH options value $710 million recently expired on account of Ethereum’s failure to interrupt above the $3,600 price mark.
ETH is now trading at $3,559. Chart: TradingView
This implies most options traders were betting Ether could be trading higher by now. Despite this, the sheer variety of call options suggests the quantity of demand pressure Ethereum is currently facing, which is ready to proceed into the subsequent month. Hence, that is an excellent time for investors to put out plans for next month’s call options.
14 June options delivery data
20,000 BTC options expired with a Put Call Ratio of 0.49, a maximum pain point of $68,500 and a notional value of $1.35 billion.
200,000 ETH options expired with a Put Call Ratio of 0.36, a max pain of $3,600 and a notional value of $710 million.… pic.twitter.com/42ruZLLtqc
— Greeks.live (@GreeksLive) June 14, 2024
How High Can Ethereum Price Go?
Demand for Ethereum is spiking. This signals that traders expect the value to proceed rising within the near term. Accumulation was at its highest in the midst of the week, with holders gobbling up greater than 298,000 ETH in 24 hours. Also, on-chain data from Santiment shows that the highest 10 exchange wallets have seen their ETH holdings drop by 8.6% prior to now few days as traders accumulate into private wallets. Notably, the uptick in withdrawals also saw 336,000 ETH value $1.2 billion withdrawn from Coinbase on Wednesday and Thursday.
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Then again, Ethereum, which began last week trading around $3,700, struggled to interrupt above a resistance of $3,600 throughout the weekend. The rise in call options, together with the increasing demand, suggests Ethereum will easily break above $3,600 in the brand new week. Breaking through $3,600 and $3,700 could be extremely bullish and will trigger a rally to latest all-time highs.
Featured image from Flow, chart from TradingView