- The analysis of ether options data indicates a prevailing bullish sentiment among traders for the end of April.
- With approximately $3.3 billion of notional ether options set to expire, around two-thirds of the open interest is placed on call options, suggesting expectations for upward price movement.
Ether options set to expire at the end of April are indicating a prevailing bullish sentiment in the market, according to analysis of open interest data. The options market reflects a notable inclination towards upside movement, with a majority of contracts placed on calls, suggesting optimism among traders.
As per data from Deribit, approximately $3.3 billion worth of notional ether options are set to expire at the end of April, with around two-thirds of this amount allocated to bullish bets on price, known as calls. Wintermute OTC Trader Jake Ostrovskis highlighted that call strikes are predominantly clustered between $3,700 – $4,000, underscoring the prevalent bullish sentiment among investors.
Furthermore, Ostrovskis pointed out that the current open interest skew demonstrates calls trading at a premium to puts, indicating a directional bias in the market and reduced reliance on writing options to finance premiums. This shift towards more bullish positions is reflected in the ether put-call ratio for the end of April expiry, which stands at 0.45, slightly more bullish than the put-call ratio for bitcoin options.
The observed put-call ratio, below one, suggests that call volume exceeds put volume, signaling bullish sentiment among traders. Ostrovskis attributed this trend to traders perceiving relative value in ether, particularly considering its underperformance compared to bitcoin in 2024 thus far.
However, despite the positive outlook reflected in the options market, concerns linger regarding the potential impact of regulatory developments on ether. Ostrovskis highlighted ongoing regulatory scrutiny, including the SEC’s efforts to classify ether as a security, and the market’s skepticism towards the approval of an ETF by June 30th, 2024. Additionally, recent reports of the SEC soliciting comments on spot ether ETFs have not been met with significant market optimism.
Despite these regulatory uncertainties, ether has demonstrated resilience, recording a 6.8% increase in the past 24 hours, trading at $3,645 at the time of reporting.
Ether Options Point to Bullish Outlook for End of April
The analysis of ether options data suggests a prevailing bullish sentiment among traders for the end of April, with a majority of contracts favoring upside movement. Despite lingering concerns over regulatory uncertainties, ether has shown resilience, recording significant price gains in recent hours.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
