According to industry experts, a recent analysis of open interest in Ethereum options expiring at the end of April shows that there is a prevailing bullish sentiment in the market and an underlying bias towards an upward trend.
The largest group of Ether options open interest scheduled to expire at the end of April shows a significant tilt toward bullish positions, with approximately $3.3 billion in notional Ether options scheduled to expire, according to Deribit data. About two-thirds of this sum was placed in calls, which represent bullish bets on price movement.
Wintermute OTC trader Jake Ostrovskis emphasized that call strike prices are concentrated between $3,700 and $4,000. This indicates a tendency towards an upward trend and an overall bullish sentiment in the market.
Furthermore, Ostrovskis noted that current open interest skew favors call trading at a premium over puts, and implied volatility increased noticeably over the weekend. This means a stronger directional bias and less reliance on writing options to fund premiums.
Bullish Put-Call Ratio
According to Deribit data, the Ethereum put-call ratio expiring at the end of April is 0.45, which is slightly more bullish compared to Bitcoin options, which have a put-call ratio of 0.48. Ostrovskis believes traders will tend to discern the relative value of ether, especially considering its underperformance compared to Bitcoin in 2024.
If the put-call options ratio is lower than 1, it means that call volume exceeds put volume, indicating an optimistic mood in the market. The Ether put-call ratio for all expirations on Deribit on Monday fell to 0.4, the lowest since late February, according to The Block’s data dashboard.
Despite the optimistic outlook, Ostrovskis warns of negative impacts from regulatory changes, such as the SEC’s ongoing investigation into Ether’s security classification. Additionally, skepticism persists about the possibility of ETF approval by June 30, 2024, with market sentiment giving the odds at only 17%. Even positive developments, such as the SEC requesting comments on a spot ether ETF, have not been fully accepted by the market.
Ethereum price change
According to The Block’s pricing page, Ether has seen a notable increase of 6.8% over the past 24 hours, trading at $3,645 at 11:14 AM ET. This price surge further reinforces the bullish mood prevailing in the options market for late-April expiration.
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