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London is live and Ethereum bulls control Friday’s $357M ETH options expiry

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$357 million in ETH options expire on August 6 and bears don’t stand a chance given that every neutral-to-bearish put is underwater.

Ether (ETH) price rallied 50% leading in the London hardfork because many investors expect the upgrade to solve the issue of high transaction fees and make the altcoin a deflationary asset. 

Pantera Capital CEO Dan Morehead has predicted that the upcoming upgrade would likely cause Ether to ‘flip’ Bitcoin (BTC) as the leading cryptocurrency but this is a topic under heavy contention.

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To understand the impact of the recent price movement, traders should analyze the weekly options expiry. Deribit derivatives currently holds 86% market share in this segment and the aggregate open interest for Aug. 6 currently stands at $357 million.

ETH Aug. 6 options aggregate open interest. Source: Bybt

The neutral-to-bullish call (buy) option provides upside price protection to buyers and the protective put (sell) option holders are safeguarded from downside price movements. By measuring each option’s price risk exposure, traders can better understand how bullish or bearish traders are positioned.

Options data shows bears were caught by surprise

The initial view shows a reasonably balanced situation because the call-to-put ratio stands at 1.15 which slightly favors the neutral-to-bullish call option by 15%. This indicator reflects the 70,956 call options that are equivalent to a $191 million open interest, stacked against 61,632 put options which reflect $166 million in open interest.

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As the chart indicates, bears were not expecting Ether to reach $2,700 and this can be seen where there are no protective put options (pink area) above that strike price.

If Ether remains above this level by Aug. 6 all of those 61,653 contracts will become worthless. This is extremely unusual and reflects just how unexpected the strong upwards price move was.

The bulls’ advantage largely depends on Ether at $2,600

While every protective put option becomes worthless above $2,700, part of the neutral-to-bullish call options has been placed at $2,800 and $3,000. This means even if Ether sustains at $2,700, 39% of the call options’ $191 million open interest becomes worthless.

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At $2,700, the neutral-to-bullish call options have a $116 million advantage. However, if Ether trades below $2,600 at the Aug. 6 expiry, this figure will decrease to $75 million.

Either way, these weekly options largely favor bulls and boost their reserves for additional bets for the upcoming expiries in August. Bears should prepare to lick their wounds and wait for a local top before trying new bearish options trades.

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Ethereum

Ether tops $4.2k, eyes record high

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The hit five-month highs of over $4,200 earlier today, extending Wednesday’s 7.3% gain – the biggest since Oct. 1. The price chart shows the path of least resistance is to the higher side, and record highs could soon come into play.

Ethereum
  • has convincingly breached the bearish trendline connecting May and September highs. Bitcoin topped similar resistance earlier this month and clocked new record highs of over $66,000 on Wednesday.
  • Ether has also flipped the September high of $4,030 into support.
  • There is little resistance overhead on the way to $4,379 – the record reached in May.
  • The relative strength index (RSI) on the 4-hour chart is signaling overbought conditions with an above-70 print. So, a pullback to former hurdle-turned-support at $4,030 may be seen before a continued rally to lifetime highs.
  • The options market is leaning bullish, with investors buying out-of-the-money or higher strike call options on expectations that U.S. regulators would soon approve an exchange-traded fund (ETF) tied to ether futures contracts.

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Ethereum

Ethereum Price Enters & Exits Discovery Phase In Hurry!! Will Altseason Be Triggered!

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The broader crypto space is fast approaching the $3 trillion mark with approximately 5% gains in 24 hours. Star cryptos of the space Bitcoin and Ethereum seems to be moving side by side with incredible gains from the start of the Q4. Especially, the most valued altcoin outperformed the flagship asset in terms of profits as well as liquidation. Here, we have brought enthralling analytics about the future of the coin!

Ethereum registers Stunning Onchain Activity! 

Looking at the clear picture of the space, Ethereum registered fresh breakthroughs in 24 hours. A recent report from Santiment, a crypto metric platform, highlighted post the launch of the EIP-1559 London hard fork upgrade, the altcoin gained traction of a new user base. Approximately, addresses with 1M to 10M ETH purchased 13.9% of the total coins in circulation in the last 24 hours. The rising activity indicates the increasing interest in the asset.  

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Another exciting report coming out from Skew, a crypto analytics platform. Highlighted that the Open Interest (OI) of CME Ethereum futures surged beyond $1 billion on October 21st, 2021. As the altseason is on the horizon and the Ethereum merger is scheduled to launch in early 2022, traders seem to be showcasing massive confidence towards the asset. 

Meanwhile, ByBt, a crypto analytics platform reported that there were about $27.59 million ETH liquidations took place in 24 hours. Which is more than Bitcoin, where BTC liquidations were about $20.37 million. Despite huge selling pressure, the star altcoin outperformed the most dominant asset with 7.95% profits in 24 hours. Traders are now looking out for long liquidations as the long versus shorts ratio stands at 1.04. 

Ethereum Price Enters Discovery Phase:

Ethereum price has just hit a new ATH of $4,366 and is trading at a decisive phase. As the pattern of the altcoin is entering its crucial compression zone, the breakout could take its value to the moon. The star altcoin is expected to retest between $3600 to $3800 before it begins with another uptrend. If a significant number of buyers fails to uplift the price action from there, then the asset could settle down at support levels between $3,200 and $3400. 

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Collectively, Ethereum price is having immense profits and if its decisive phase ends up on a positive note. Then the star altcoin could trigger the biggest altseason of the decade. The current price action of the coin could slowly pave the way for major altcoins with a larger market cap. Then, traders may shift their attention to coins with stronger fundamentals. From there, meme coins and the rest of the coins could boom. 

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Ethereum

Ethereum Price Enters & Exits Discovery Phase In Hurry!! Will Altseason Be Triggered!

Published

on

The broader crypto space is fast approaching the $3 trillion mark with approximately 5% gains in 24 hours. Star cryptos of the space Bitcoin and Ethereum seems to be moving side by side with incredible gains from the start of the Q4. Especially, the most valued altcoin outperformed the flagship asset in terms of profits as well as liquidation. Here, we have brought enthralling analytics about the future of the coin!

Ethereum registers Stunning Onchain Activity! 

Looking at the clear picture of the space, Ethereum registered fresh breakthroughs in 24 hours. A recent report from Santiment, a crypto metric platform, highlighted post the launch of the EIP-1559 London hard fork upgrade, the altcoin gained traction of a new user base. Approximately, addresses with 1M to 10M ETH purchased 13.9% of the total coins in circulation in the last 24 hours. The rising activity indicates the increasing interest in the asset.  

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Another exciting report coming out from Skew, a crypto analytics platform. Highlighted that the Open Interest (OI) of CME Ethereum futures surged beyond $1 billion on October 21st, 2021. As the altseason is on the horizon and the Ethereum merger is scheduled to launch in early 2022, traders seem to be showcasing massive confidence towards the asset. 

Meanwhile, ByBt, a crypto analytics platform reported that there were about $27.59 million ETH liquidations took place in 24 hours. Which is more than Bitcoin, where BTC liquidations were about $20.37 million. Despite huge selling pressure, the star altcoin outperformed the most dominant asset with 7.95% profits in 24 hours. Traders are now looking out for long liquidations as the long versus shorts ratio stands at 1.04. 

Ethereum Price Enters Discovery Phase:
Ethereum price has just hit a new ATH of $4,366 and is trading at a decisive phase. As the pattern of the altcoin is entering its crucial compression zone, the breakout could take its value to the moon. The star altcoin is expected to retest between $3600 to $3800 before it begins with another uptrend. If a significant number of buyers fails to uplift the price action from there, then the asset could settle down at support levels between $3,200 and $3400.

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Collectively, Ethereum price is having immense profits and if its decisive phase ends up on a positive note. Then the star altcoin could trigger the biggest altseason of the decade. The current price action of the coin could slowly pave the way for major altcoins with a larger market cap. Then, traders may shift their attention to coins with stronger fundamentals. From there, meme coins and the rest of the coins could boom.

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