Investors are bullish on ethereum as the industry awaits the launch of ethereum spot ETFs. This sentiment is conveyed through the recent expiration of ethereum options contracts and the buy-sell ratio. According to the data, more than 200,000 eth options expired recently and the crypto community is eagerly awaiting the direction of ethereum price.
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Notably, most expiring eth options are call options, meaning buyers are betting that the price will rise. At the same time, the put-call ratio is 0.36. This low value means that market participants are currently purchasing more calls than puts.
Options show growing demand for ethereum
Options are contracts that give buyers the right, but not the obligation, to buy or sell an asset at a specific price on or before a certain date. If the price of ethereum is above the strike price of these options at expiration, buyers will likely exercise their right to purchase eth at a discount, driving the price up even further.
According to the data, participants in the options market are betting on the price of ethereum to rise despite the recent stagnation around $3,500. Notably, the data shows that 200,000 eth options worth $710 million recently expired due to ethereum failing to break the $3,600 price mark.
This means that most options traders were betting that Ether would be trading higher by now. Despite this, the large number of call options suggests the amount of demand pressure ethereum is currently facing, which will continue over the next month. Therefore, this is a good time for investors to set plans for next month's call options.
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Options delivery data for June 14
20,000 btc options expired with a bid-ask ratio of 0.49, a high pain point of $68,500, and a notional value of $1.35 billion.
200,000 eth options expired with a bid-ask ratio of 0.36, a maximum pain of $3,600, and a notional value of $710 million.… pic.twitter.com/42ruZLLtqc
– Griegos.live (@GreeksLive) twitter.com/GreeksLive/status/1801490763261558884?ref_src=twsrc%5Etfw” rel=”nofollow”>June 14, 2024
How high can ethereum price go?
Demand for ethereum is increasing. This indicates that traders expect the price to continue rising in the short term. Accumulation peaked midweek, with holders devouring over 298,000 eth in 24 hours. Furthermore, in chain x.com/santimentfeed/status/1801370642811654633″ target=”_blank” rel=”nofollow”>Santiment data shows that the top 10 exchange wallets have seen your eth ethereum-mega-whales-withdraw-exchanges/” target=”_blank” rel=”nofollow”>holdings fall 8.6% in recent days as traders accumulate in private wallets. Notably, the increase in withdrawals also generated 336,000 eth worth $1.2 billion. withdrawn from Coinbase on Wednesdays and Thursdays.
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On the other hand, ethereum, which started last week trading around $3,700, struggled to overcome a resistance at $3,600 over the weekend. The rise in call options, coupled with rising demand, suggests that ethereum will easily surpass $3,600 in the new week. Breaking above $3,600 and $3,700 would be extremely bullish and could trigger a rally towards new all-time highs.
Featured image of Flow, TradingView chart
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