Investors are bullish on Ethereum as the industry awaits the launch of Spot Ethereum ETFs. This sentiment is reflected in the recent expirations of Ethereum options contracts and the put-call ratio. According to data, more than 200,000 ETH options have recently expired and the crypto community is eagerly awaiting the direction of the Ethereum price.
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Notably, the majority of 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 rising 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 Ethereum price is above the strike price of these options at expiration, buyers will likely exercise their right to purchase ETH at a discount, which would further drive up the price.
According to data, options market participants are betting on Ethereum’s price increase despite its recent stagnation around $3,500. Notably, the data shows that 200,000 ETH options worth $710 million recently expired as Ethereum failed to break above the $3,600 price line.
This means that most options traders were betting that Ether would trade higher by now. Nevertheless, the sheer number of call options suggests the amount of demand pressure Ethereum is currently facing, which will continue into the coming month. Therefore, this is a good time for investors to start planning for next month’s call options.
June 14 options delivery details
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 the Ethereum price go?
The demand for Ethereum is increasing. This indicates that traders expect the price to continue rising in the short term. Accumulation peaked mid-week and holders were shocked more than 298,000 ETH within 24 hours. Also on a chain data from Santiment shows that the top 10 exchange portfolios have seen their ETH property decreases 8.6% in recent days as traders pile into private portfolios. Notably, the increase in withdrawals also resulted in 336,000 ETH worth $1.2 billion being issued. withdrawn from Coinbase on Wednesday and Thursday.
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On the other hand, Ethereum, which started trading around $3,700 last week, struggled to break above a resistance at $3,600 over the weekend. The increase in call options, along with increasing demand, suggests that Ethereum will easily break above $3,600 in the new week. Breaking USD 3,600 and USD 3,700 would be extremely bullish and could trigger a rally to new all-time highs.
Featured image of Flow, chart from TradingView