Given the market expects the release of Spot Ethereum ETFs, investors are displaying great optimistic attitude regarding Ethereum. The last expiration of more than 200,000 Ethereum (ETH) options contracts and a notable put-call ratio highlight this hope.
Market data shows that most of these expiring ETH options were call options, meaning investors are expecting a price rise. With a put-call ratio of 0.36, it is clear that right now more market players are buying call options than put options.
Ethereum Price Resistance Challenges
Options are financial instruments giving buyers the right, but not the duty, to purchase or sell an asset at a predefined price before a given date. Should Ethereum’s price surpass the expiry strike price, buyers are likely to exercise their options to acquire ETH at a discount, therefore perhaps influencing the price going forward.
Though Ethereum has lately stagnated around the $3,500 mark, players in the options market hope for a price rise. Data shows that 200,000 ETH options, worth $710 million, lately expired after Ethereum fell short of the $3,600 level. This implies that by now most traders expected Ether to trade more highly. The significant quantity of call options, however, emphasizes ETH present demand pressure—which is projected to last throughout the next month.
The growing demand for ETH reflects traders’ forecasts of a near-term continuous price rise. Midweek accumulation peaked when holders bought more than 298,000 ETH in a day. As traders migrate their assets to private wallets, on-chain data from Santiment shows that ETH values in the top 10 exchange wallets have dropped 8.6%. Especially, between Wednesday and Thursday, 336,000 ETH valued $1.2 billion was taken out from Coinbase.
Starting last week trading at $3,700, Ethereum battled to break above the $3,600 resistance during the weekend. Rising call options and increasing demand point to ETH maybe soon surpassing the $3,600 milestone. Breaking the $3,600 and $3,700 levels successfully would be quite optimistic and might set off a rally to reach new all-time highs.
