Investors are feeling positive about Ethereum as the market eagerly anticipates the launch of Spot Ethereum ETFs. The recent expiration of over 200,000 Ethereum options contracts has added to this sentiment, along with the put-call ratio. The majority of the expiring options were call options, indicating that buyers are betting on a rise in Ethereum’s price. The low put-call ratio of 0.36 suggests that market participants are leaning towards buying more call options than put options.
Options contracts provide buyers with the right to buy or sell an asset at a specific price within a certain timeframe. If the price of Ethereum is higher than the strike price of these options at expiry, buyers are likely to exercise their right to buy ETH at a discounted price, potentially driving the price up further. Data indicates that despite Ethereum’s recent price stagnation around $3,500, market participants are betting on an increase in Ethereum’s price. The expiration of 200,000 ETH options worth $710 million due to Ethereum’s failure to surpass the $3,600 price level suggests that most options traders expected Ether to be trading higher by now.
The increasing demand for Ethereum is reflected in the surge in call options, indicating that traders are optimistic about the price continuing to rise in the near future. Accumulation of Ethereum reached its peak mid-week, with holders acquiring over 298,000 ETH in a 24-hour period. On-chain data reveals that the top 10 exchange wallets have seen an 8.6% drop in ETH holdings as traders move their assets into private wallets. Additionally, a significant amount of ETH was withdrawn from Coinbase, further signaling increased demand for the cryptocurrency.
Despite Ethereum struggling to break above $3,600 after starting the week around $3,700, the rise in call options and growing demand suggest that Ethereum could easily surpass the $3,600 resistance in the upcoming week. Breaking through $3,600 and $3,700 levels could pave the way for a bullish rally towards new all-time highs.
Overall, the market sentiment towards Ethereum is positive, with investors placing their bets on a price surge in the near future. The expiration of a significant number of call options and the low put-call ratio indicate a strong demand for Ethereum. As traders accumulate more ETH and move their holdings to private wallets, the stage is set for Ethereum to potentially break through key resistance levels and embark on a bullish trend.