There is a wave of optimism in the crypto market at the moment, especially among Ethereum buyers, and a lot of activity in the options market shows this.
Options prices have changed noticeably because people are waiting for possible approvals of spot Ethereum exchange-traded funds (ETFs). Call options for Ethereum are now more expensive than put options for all expirations. This shows that traders are optimistic about the price of Ethereum.
People who think prices will go up usually buy call options, which give the owner the right to buy an object at a certain price within a certain amount of time. Put options, however, let owners sell at a set price. This is often done to protect against price declines.
Deribit CEO Luuk Strijers pointed out this trend, saying that the “put minus call skew is negative across all expiries and increasing further beyond the end-of-June expiry, a quite bullish signal.” The futures price basis has also increased to about 14%, which adds to the positive picture.
Ethereum Traders Show Optimism
More and more traders are buying premium put options, especially ones that expire at the end of June or later. This is a clear sign that the market is going up. This trend shows that people are more likely to expect prices to go up instead of trying to protect themselves from possible price reductions.
There is much hope for the approval of spot Ethereum ETFs after the US Securities and Exchange Commission (SEC) asked for changes to be made to files without warning. This has caused a lot of action on the market. In the last 24 hours, Deribit reported an almost unheard-of $12.5 billion worth of trades.
Deribit data shows that more than $480,000 worth of calls will expire by the end of the month, worth more than $1.7 billion in total. The strike prices go as high as $7,000, and the options are worth $1.452 billion. This shows that Ethereum options buyers are very optimistic.
Even though Ethereum’s price dropped 2.4% to $3,690 not long ago, the currency has risen nearly 25% in the last week. The market continues to be extremely enthusiastic about spot ETH ETFs. A renowned crypto analyst thinks that Ethereum will briefly drop to around $4,000 before soaring to new all-time highs, possibly hitting $5,000.
