Ethereum. According to analysts, there is a lot of open interest in $5,000 call options for Ether that expire at the end of June. This suggests that traders are bullish on the cryptocurrency and are taking advantage of call option spreads between $4,000 and $5,000 to be ready for possible price increases.
“When we look at derivatives data, we notice that the June $5,000 call is currently the highest open interest in Ether,” said Rachel Lin, co-founder of SynFutures.
Deribit data backs up this observation by showing that a call option with a $5,000 strike price has the highest concentration of open interest among Ether options.
The Bullish Call Will Continue Until the End of June
If QCP Capital’s most recent options distribution analysis is to be believed, traders will be hoping to cash in on a potential increase in the price of Ether between $4,000 and $5,000 next month.
Based on the numbers, it looks like by the end of June 2024, traders will have bought $4,000 worth of call options and sold $5,000 worth of options.
“The committee notes the bullish tone for Ether, with large buyers generating Ether call spreads between $4,000 and $5,000 at the end of June 2024,” said analysts from QCP Capital.
There Is a Bullish Bias in the Put-Call Ratio
Lin elaborated by saying that “65% for calls versus 35% for puts” describes the open interest in Ether. As of the expiration date in late June, this aligns with the data from Deribit, which indicates a put-call ratio of 0.56. The market is bullish when the put-call ratio is less than one, meaning that more people are buying call options than put ones.
“Although the spot market is consolidating, the options market is still bullish for June, and if this trend keeps up, we might see another bull rally soon.” — Lin tacked on.
Nonetheless, the put-call ratios for ether options have been increasing on multiple derivatives exchanges over the past week, according to The Block’s data dashboard. Some traders may be contemplating hedging strategies in anticipation of possible negative outcomes in the event that the U.S. Securities and Exchange Commission delays the launch of spot ether exchange-traded funds, as the increase in price follows their approval but not their launch.
The U.S. Securities and Exchange Commission approved Ether spot ETFs on Thursday, May 23, but it may be weeks or months before they go live, in contrast to Bitcoin ETFs that started trading the day after approval. In the absence of further information regarding the S-1 accusations, analysts at QCP Capital do not anticipate a possible breakout in the price of Ether.
At 5:27 a.m. ET, one Ether was worth $3,728—a 0.22% increase from the previous 24 hours. There was a 0.3% increase to 143.29 on the GM 30 Index, which is a compilation of the 30 biggest cryptocurrencies. https://ethereum.org