The Ethereum (ETH) options market for June is showing a significant interest in higher strike prices, particularly focusing on levels exceeding $3,600. Traders are making concentrated bets on calls surpassing this price, indicating a bullish sentiment toward Ethereum’s near-term trajectory.
Options are contracts that give traders the right, but not the obligation, to buy or sell the underlying asset at a specified strike price by the expiry date. Call options are typically purchased by traders who anticipate an increase in the asset’s price, while put options are favored by those expecting a decline in the asset’s price. In this case, the market is leaning heavily towards calls, with a preference for higher strike prices.
The current data from Deribit reveals that roughly 622,636 Ethereum call contracts are set to expire by the end of June, with a notional value exceeding $1.8 billion. The most favored strike price among these optimistic bets is an ambitious $6,500, reflecting trader confidence in Ethereum’s potential uplift.
Despite the positivity in the options market, Ethereum is currently experiencing a slight downturn. It has dropped 5.4% over the past week and 2.2% in the last 24 hours, trading below $2,900. This decline highlights the importance of upcoming market catalysts that could significantly impact ETH’s price.
One significant event to watch is the US Securities and Exchange Commission’s decision on applications for Ethereum-based Exchange-Traded Funds (ETFs), set for May 25th. Approval could attract institutional investments into Ethereum, potentially boosting its price. Conversely, rejection could dampen the bullish sentiment and lead to further pullbacks.
From a technical analysis perspective, signs point to a possible rebound in Ethereum’s price. The “Bullish Cypher Pattern,” identified by analyst Titan Of Crypto, suggests that Ethereum may be at a turning point. Currently, Ethereum is at the 38.2% Fibonacci retracement level, a key support zone in many bull markets.
The Ethereum options market is signaling a bullish sentiment with a focus on higher strike prices, particularly above $3,600. Traders are positioning themselves for the potential upside in Ethereum’s price, despite the current market downturn. While upcoming events like the SEC decision on ETF applications could sway the market, technical analysis points to a possible rebound in Ethereum’s price. It will be essential to monitor these factors closely to gauge the future trajectory of Ethereum in the market.