Ethereum options data shows mixed opinions of traders on the future of ETH


After looking at Ether (ETH) options for June 25, you would think traders have become overly bullish or ultra-bearish. Currently, there are big bets for prizes below $ 1,000, while others are for $ 3,800 and above.

A recent report from Coinshares shows that several crypto funds have started registering net inflows after weeks of record-breaking outflows. The report notes that Ether vehicles saw a total inflow of $ 47 million, bringing their market dominance to 27%.

DeFi’s growth supports rising ether prices

Another positive factor is that DeFi protocols maintain a Locked-In Total Value (TVL) of $ 48 billion, even though the industry has taken a hard hit after the recent ether price crash.

Ethereum network net worth locked in on smart contracts. Source: DeBank

The 57% increase over the past three months should appeal to even the most optimistic investors, but cryptocurrency traders are notoriously exaggerating the situation that has occurred over the past few weeks. Therefore, as Ether fell from the all-time high of $ 4,380 on May 12, traders quickly rushed to put up protection offers at $ 400.

On the other hand, the long-awaited transition to a proof-of-stake consensus model could be the source of the positive expectations. Another important stepping stone is the EIP-1559 improvement proposal set for next month, and some traders have price targets ranging from $ 4,000 to $ 10,000.

June 25 Bitcoin options open interest. Source: Bybt

There are currently 623,800 Ether options contracts expiring June 25, totaling open interest of $ 1.75 billion. Neutral to bullish calls (calls) are currently 29% more represented, although this call-to-sell ratio uses equal weight for each strike, regardless of its probabilities.

The bears spent over a million dollars to strengthen their positions

Ultra-bearish put (put) options at $ 1,600 and below amount to 170,000 Ether contracts, representing open interest of $ 476 million. However, given the roughly three weeks before the June 25 expiration, these contracts are trading for less than $ 32 each. The market value of these bearish options is $ 1.2 million.

On the flip side, the bulls have probably overdone by buying calls at $ 3,800 and above. These 160,000 Ether contracts represent open interest of $ 450 million, but since their current face value is less than $ 80 each, their market value is $ 5 million.

Therefore, the bulls spent more money to establish their position despite the similar open interest placed on both sides.

These out-of-the-money options are a great way for options sellers to cash in the premium up front. The same methodology can be applied for $ 2,100 puts and $ 3,800 calls.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trade move involves risk. You should do your own research before making a decision.




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