ethereum (eth) options for June show marked interest in higher strike prices, focusing on levels above $3,600.
eth” target=”_blank” rel=”nofollow”>Data of Deribit reveals a concentrated bet among traders on call options exceeding this price, indicating bullish sentiment towards ethereum's near-term trajectory. The most favored strike price among these bullish bets is an ambitious $6,500.
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Bullish options market on ethereum
In particular, options are contracts that give traders the right, but not the obligation, to buy (in the case of call options) or sell (in the case of put options) the underlying asset at a strike price. specific before the expiration date.
A call option is typically purchased by traders who believe that the price of the asset will increase, allowing them to buy at a lower rate and potentially sell at a higher market price. On the contrary, put options are preferred by those who anticipate a drop in the price of the asset, with the aim of selling it at the current exchange rate and repurchasing it at a lower value.
Currently, the ethereum options market is leaning heavily towards calls, with aggregate open interest (representing the total number of outstanding contract options) showing a preference for higher strike prices.
This concentration of calls, primarily above the $3,600 mark, suggests that a significant market segment is positioning itself for ethereum to ascend to higher levels by the end of June.
According to data from Deribit, approximately 622,636 ethereum purchase contracts will expire at the end of June, encapsulating a face value of over $1.8 billion. Such substantial positioning underlines the market's confidence in ethereum's potential rise.
The data further shows that the most substantial open interest is clustered around the $6,500 strike price, with a face value of $193 million.
This concentration reflects traders' optimism and supports the market price of ethereum, especially if these options are exercised as the asset's price approaches or surpasses these exercise levels.
Despite the optimism inherent in these options, ethereum is currently undergoing a slight slowdown. It has fallen 5.4% over the past week and 2.2% in the last 24 hours, positioning it below $2,900. This decline puts even more attention on upcoming market catalysts that could significantly influence the price of eth.
Regulatory decisions and technical indicators: a double influence on the path of eth
A major upcoming event is the US Securities and Exchange Commission's (SEC) decision on several applications for ethereum-based exchange-traded funds (ETFs), which is due on May 25.
This decision is critical as approval could mark the beginning of a wave of institutional investments in ethereum, which could catapult its price. On the contrary, rejection could curb bullish sentiment and trigger further pullbacks.
From a technical analysis point of view, the signs point to a possible rebound. The “bullish crypto pattern,” identified by analyst Titan Of crypto, suggests ethereum could be at an inflection point. ethereum is currently at the 38.2% Fibonacci retracement level, a key support zone in many bull markets.
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Historically, this level has acted as a launching pad for upward price movements, suggesting that ethereum could be gearing up for a significant rise.
<blockquote class="twitter-tweet”>
twitter.com/hashtag/Altcoins?src=hash&ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>#Altcoins twitter.com/hashtag/ethereum?src=hash&ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>#ethereum Incoming bounce.
The bullish crypto pattern developed perfectly and all targets were achieved .twitter.com/hashtag/eth?src=hash&ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>#eth It is currently at the 38.2% Fibonacci retracement level, also called the “first stop.” In a bull market this level is maintained.
I expect a rebound from this level. pic.twitter.com/o9e6VLERez
– Cryptocurrency titan (@Washigorira) twitter.com/Washigorira/status/1789725762460766328?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>May 12, 2024
Featured image from Unsplash, chart from TradingView
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