Investors are bullish on Ethereum as the industry awaits the launch of Spot Ethereum ETFs. This sentiment is reflected in the recent expiration of Ethereum options contracts and put rates. According to data, over 200,000 ETH options have recently expired, and the cryptocurrency community is eagerly waiting for the direction of Ethereum’s price.
It’s worth noting that 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 buying more call options than put options.
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 specified price on or before a specified date. If the price of Ethereum is higher than the strike price of these options at expiration, buyers will likely exercise their right to purchase ETH at a discount, causing the price to rise further.
According to data, options market participants are betting on Ethereum’s price rising despite its recent stagnation around $3,500. Specifically, the data shows that 200,000 ETH options worth $710 million recently expired due to Ethereum failing to break above $3,600.
This means that most options traders were betting that the Ether rate would become more costly. Still, the sheer number of call options suggests the amount of demand pressure Ethereum is currently facing, which will continue into the next month. This is therefore a good time for investors to develop call option plans for next month.
June 14 option delivery data
20,000 BTC options expired with a put 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 call put ratio of 0.36, a maximum cost of $3,600 and a notional value of $710 million.… pic.twitter.com/42ruZLLtqc— Greeks.live (@GreeksLive) June 14, 2024
How high can Ethereum’s price rise?
The demand for Ethereum is growing rapidly. This signals that investors expect the price to continue to rise in the near future. Accumulation was highest midweek, with stock holders gobbling up the price over 298,000 ETH within 24 hours. Also on a chain data from Santiment shows that the top 10 exchange wallets have seen their ETH farms are sinking 8.6% over the past few days as investors flocked to private wallets. Notably, 336,000 ETH worth $1.2 billion also saw an escalate in withdrawals withdrawn from Coinbase on Wednesday and Thursday.
On the other hand, Ethereum, which started trading around $3,700 last week, struggled to break the resistance at $3,600 over the weekend. The escalate in call options along with increasing demand suggests that Ethereum will easily surpass the $3,600 level in the fresh week. A break of the $3,600 and $3,700 levels would be extremely bullish and could trigger a rally towards fresh all-time highs.
Featured image from Flow, chart from TradingView
