As a seasoned crypto investor with several years of experience under my belt, I’ve witnessed numerous market events that have shaped the trajectory of digital assets. The current Ethereum price action surrounding its options expiry is one such event that has piqued my interest.
Amidst Ethereum‘s price instability due to the anticipated ETF approval, investors closely monitor the developments as Ethereum options are set to expire today. At present, Ethereum has rebounded by 3% from its previous lows and is trading near $3,250.
Ethereum Options Expiry
According to Deribit’s data, approximately 499,811 Ethereum options are scheduled to expire today, with a total notional value of around $1.622 billion. The price level causing the greatest potential loss for option holders is currently set at $3,300.
The Deribit data indicates a put-call ratio of 0.46, suggesting that call options are significantly more popular than put options among traders. This trend underscores the prevailing market sentiment, which is currently leaning towards optimism rather than pessimism.
The price of Ethereum has rebounded to $3,250 today as part of the wider market upturn. Yesterday, the ETH price plunged to its significant support level of $3,150 following the sell-off that appeared to be a reaction to the approved spot Ethereum Exchange Traded Funds (ETFs). The past two days have seen substantial outflows from these Ethereum-linked investment vehicles, with Grayscale’s ETHE experiencing significant losses.
Buy the ETH Dips?
From my perspective as a researcher, the Ethereum market has experienced notable selling pressure since the ETF trading became available earlier this week. This trend mirrors the price action of Bitcoin following its ETF approval in January.
For around two weeks, the cost of Bitcoin stayed relatively low. However, according to market experts, Ethereum could experience a comparable surge and initiate an upward trend by late August.
Analyzing the recent on-chain activity from CryptoQuant, I’ve identified approximately 160,930 coins moving into cryptocurrency exchange Coinbase over the last two days. Concurrently, about 47,811 Ether have been withdrawn from the platform. Despite this outflow, the overall transfer of 113,119 Ether signifies a persistent selling trend for the altcoin.
A crypto quant analyst pointed out that the current Ethereum network flow could serve as a precursor, indicating if Grayscale’s ETHE Spot ETF is likely to put more selling pressure in the near future.
After the approval of the Spot ETF, 160,930 #Ethereum entered Coinbase in 2 days
The flow of Ethereum ($ETH) through networks could serve as an early sign of whether Grayscale’s ETH-backed Spot Exchange Traded Fund (ETF), ETHE, will persist in putting downward pressure.
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— CryptoQuant.com (@cryptoquant_com) July 26, 2024
Bitcoin Options Expiry
According to Deribit’s data, approximately 265,718 Bitcoin options are scheduled to expire today, with a total value of around $18.6 billion. The put-call ratio stands at 0.44, suggesting a stronger preference for call options and increased optimism in the market. In the past day, Bitcoin has rebounded by 5%, surpassing the $67,000 mark once again due to heightened optimism following the Bitcoin Conference.
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2024-07-26 11:20