350,000 Ethereum Options Expire Today With Max Pain Point of $3200, What’s Ahead?

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As a researcher with experience in cryptocurrency markets, I find today’s Ethereum (ETH) price action intriguing. The launch of the Ethereum ETF on May 23 has led to sell-the-news for ETH, with the price trading down 4% at $3,650 and a market cap of $438 billion. This price movement coincides with the weekly options expiry, where approximately 350,000 Ethereum options are set to expire, featuring a Put Call Ratio of 0.58, a Maxpain point of $3,200, and a notional value of $1.3 billion.

On Thursday, May 23rd, the debut of the Ethereum-linked SPOT ETF led to a sell-off in Ether markets. The cryptocurrency is currently priced at $3,650, representing a 4% decrease from its previous value. With a market capitalization of $438 billion as of now, this price drop occurs concurrently with the weekly options expiry.

350,000 Ethereum Options Expire

As an analyst examining data from Greeks.live, I’ve discovered that around 350,000 Ethereum (ETH) options are approaching their expiration dates. The Put-Call Ratio for these options stands at 0.58, suggesting a slightly bearish sentiment among traders. The Maxpain point, which represents the price level where the majority of option holders are neither making a profit nor incurring losses, is currently set at $3,200. With a notional value of $1.3 billion, these options represent a significant financial exposure to Ethereum’s market movements.

In recent developments, ETH has surpassed Bitcoin‘s price rally, fueled primarily by progress in Ethereum-based ETFs. This sudden growth resulted in a substantial 20% gain within a day. At one point, the Short-term Implied Volatility (IV) for ETH reached an astounding high of 150%, far exceeding Bitcoin’s IV for the same timeframe.

As a crypto investor, I’ve noticed a significant difference between Bitcoin (BTC) and Ethereum (ETH) lately. Based on my analysis of both block and market trading structures, it appears that Ethereum is experiencing sustained bullish sentiment. However, keeping high implied volatility (IV) levels for extended periods has proven to be difficult. To navigate this situation, I believe utilizing calendar spreads could be a more advantageous approach going forward. This strategy allows me to capitalize on the time decay of options and potentially profit from the price difference between two expiration dates.

350,000 Ethereum Options Expire Today With Max Pain Point of $3200, What’s Ahead?

As a crypto investor, I’ve noticed some significant price action in Ethereum right before the highly anticipated ETF approval on Thursday. The volatility was quite noticeable, resulting in approximately $132 million worth of long positions being liquidated.

ETH Exchange Wallet Deposits Rise

As a crypto analyst, I’ve noticed an intriguing trend in recent Ethereum ($ETH) deposits. These deposits into cryptocurrency exchange wallets have been steadily increasing, which could potentially indicate one of two scenarios: a sell-off or heightened profit-taking activity among Ethereum holders. Moreover, the TD Sequential indicator on Ethereum’s daily chart is currently signaling a sell signal. These observations may suggest that we could be in for a downturn in Ethereum prices.

The current green candle forming on the daily chart, representing nine periods, signals an impending increase in selling activity. This may trigger a pullback ranging from one to four candlesticks, or initiate a fresh downtrend before the uptrend continues.

350,000 Ethereum Options Expire Today With Max Pain Point of $3200, What’s Ahead?

Long-term investors can seize the current downturn in Ethereum prices as an chance to purchase at a discount. The SEC has given its nod to 19b-4 filings for an Ethereum ETF, but the Securities and Exchange Commission (SEC) still needs to approve the S-1 registration before trading can commence on exchanges. This process may take several more weeks.

Michael van de Poppe, a crypto analyst, explains that there is a delay before the listing event occurs, after which the market’s response will determine if we’ll see a robust uptrend continue.

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2024-05-24 12:16