Investors are bullish on Ethereum as the industry awaits the launch of Spot Ethereum ETFs. This sentiment is conveyed by the recent expiration of Ethereum options contracts and the ask ratio. According to data, more than 200,000 ETH options have expired recently, and the cryptocurrency community is eagerly awaiting the Ethereum price trend.
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Notably, the majority of expiring ETH options are call options, which means buyers are betting that the price will rise. Meanwhile, the put-call ratio is 0.36. This low value means that market participants are currently buying more call options than put options.
Options show high demand for Ethereum
Options are contracts that give buyers the right, but not the obligation, to buy or sell an asset at a specified price on or before a certain date. If the price of Ethereum is higher than the strike price of these options at expiration, buyers will likely exercise their right to buy Ethereum at a discount, which could cause the price to rise further.
According to the data, options market participants are betting on the price of Ethereum rising despite the recent stagnation around $3,500. In particular, data shows that 200,000 ETH options worth $710 million recently expired due to Ethereum failing to breach the $3,600 price mark.
This means that most options traders were betting that the trading price of ether would be higher now. Despite this, the sheer number of call options indicates the amount of demand pressure Ethereum is currently facing, which is set to continue until next month. Hence, this is a good time for investors to make plans for call options in the coming month.
Options delivery data for June 14
20,000 BTC options expired with a put 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 ratio of 0.36, a maximum pain of $3,600 and a notional value of $710 million. pic.twitter.com/42ruZLLtqc– Greeks.Live (@GreeksLive) June 14, 2024
How high can the price of Ethereum go?
The demand for Ethereum is increasing. This indicates that traders expect the price to continue rising in the near term. Accumulation was at its highest levels mid-week, with holders taking stock More than 298,000 Ethereum In 24 hours. Also, on the chain Data from Santiment It shows that the top 10 exchange wallets have seen their ETH Property goes down 8.6% in the past few days as traders piled into private wallets. Notably, the rise in withdrawals also saw 336,000 Ethereum worth $1.2 billion Pulled from Coinbase On Wednesday and Thursday.
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On the other hand, Ethereum, which started trading last week at around $3,700, had difficulties breaking the $3,600 resistance level over the weekend. The increase in call options, coupled with growing demand, suggests that Ethereum will easily surpass $3,600 in the new week. A break above the $3,600 and $3,700 area would be very bullish and could lead to a rally to all-time highs.
Featured image of Flow Chart from TradingView
