Cryptocurrency News

Ethereum Options Data Shows Traders Mixed Opinions on the Future of ETH


After Ether review (ETH) Options for June 25, one might think that traders have either become overly optimistic or over-bearish. Currently, there are big bets for prices below $1,000, while others are targeting $3,800 and above.

A recent report by Coinshares shows that multiple Crypto funds start seeing net inflows After weeks of record outflows. The report stated that Ether Vehicles saw a total inflow of $47 million, increasing its market dominance to 27%.

DeFi Growth Supports Higher Ether Prices

Another positive factor is that the DeFi protocol maintains a total value locked (TVL) of $48 billion, even though the sector has suffered significant losses following the recent Ether price crash.

The net worth of the Ethereum network is locked on smart contracts. Source: DBank

The 57% growth over the past three months should please even the most optimistic investors, but crypto traders have notoriously exaggerated whatever the situation has been in recent weeks. Therefore, as Ether dropped from an all-time high of $4,380 on May 12, traders quickly scrambled to lower the protective put to $400.

On the other hand, the much-anticipated transition to a proof-of-stake consensus model may be the root of positive expectations. The EIP-1559 correction proposal set for the next month is another important step, with some traders setting a price target of $4,000 to $10,000.

June 25 bitcoin options open interest. Source: Bybt

There are currently 623,800 Ether options contracts expiring on June 25, with a total open interest of $1.75 billion. Neutral-to-bullish call (buy) options currently represent 29% higher, although this call-to-put ratio uses the same weight for each strike regardless of its probabilities.

The Bears spent over $1 million building their position

Ultra-bearish put (sell) option at $1,600 and a lower amount of 170,000 Ether contracts, equivalent to open interest of $476 million. However, those contracts are trading below $32 each, with about three weeks left until the June 25 expiration. The market value of those bearish options is $1.2 million.

On the other hand, the bulls are likely to overbought by buying call options at $3,800 and above. These 160,000 Ether contracts amounted to $450 million in open interest, but given that their current face value is less than $80, their market cap is $5 million.

Therefore, the bulls spent more money setting up their positions, despite similar open interest from both sides.

These out-of-the-money options are a great way for option sellers to cash advance in premium. The same methodology can be applied for $2,100 put options and $3,800 call options.

The views and opinions expressed here are those of only those Author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should do your own research when making a decision.