Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
Crypto Flexs
Home»ADOPTION NEWS»Analysts say the Ether derivatives situation could trigger sharp ETH price movements in the near future.
ADOPTION NEWS

Analysts say the Ether derivatives situation could trigger sharp ETH price movements in the near future.

By Crypto FlexsApril 16, 20243 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Analysts say the Ether derivatives situation could trigger sharp ETH price movements in the near future.
Share
Facebook Twitter LinkedIn Pinterest Email

“The market is selling short-term options ether gamma, meaning a sharp move in either direction could be amplified,” QCP Capital analysts said.

Crypto derivatives trader Gordon Grant discovered similar conditions. He recently witnessed a sharp increase in short-term volatility as Ethereum experienced a more severe sell-off than Bitcoin.

“You can see the material differences between Ether and Bitcoin. The term structure remains sharply inverted with the kink showing the demand for gamma and the premium for ether gamma to Bitcoin and the premium for ether gamma to ether vega. It works,” Grant told The Block.

Gamma represents the rate of change between an option’s implied position and the price of the underlying asset. A higher gamma means that there will be more change as the price of that particular asset changes. Meanwhile, vega is the change in option value due to changes in implied volatility.

More traders are purchasing short-term put options before expiration. According to Deribit Ethereum options open interest data, the current put-call ratio for upcoming expirations is high at 1.04, especially for this Thursday’s expiration. A put-call ratio above 1.0 indicates a bias toward puts, indicating bearish sentiment in the market.

A call option gives the owner the right, but not the obligation, to purchase the underlying asset and is therefore a bullish bet on that asset. Puts, on the other hand, give the owner the right to sell the asset and are a bearish bet.

Put options provide gamma to these traders because as the price of Ether falls, the delta of the option decreases, allowing them to profit if the price falls.

Ether experiencing short-term negative emotions

QCP Capital analysts pointed out that indicators of Ethereum risk reversal trading suggest very pessimistic expectations about Ethereum price movements in the near future. “The Ethereum risk reversal turned very negative at -12%, indicating uneasy sentiment,” QCP Capital analysts added.

Risk reversal trading is a complex strategy used by traders to take a position on the price direction of an asset while managing the risk of adverse price movements.

The analysts added that due in part to macroeconomic conditions, cryptocurrency markets are becoming “increasingly volatile as the downside distortion of Ethereum’s risk reversal deepens.” “We expect this anxiety to persist as the Iran-Israel conflict intensifies,” QCP Capital analysts said, adding, “Risk aversion has been further exacerbated by weakness in U.S. stocks.”

According to The Block’s pricing page, Ethereum is down about 3.4% over the past 24 hours and is trading at $3,073 at 10:31 a.m. ET.

Over the past 24 hours, the price of Ethereum has fallen by about 3.4%. Image: Block.


Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.

© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Vortex uses NVIDIA Jetson to innovate medical imaging with CT-similar ultrasound.

June 6, 2025

Sei Development Foundation: Use of US Innovation for Global Block Chain

June 6, 2025

Solana’s Journey: Promotion of Challenge, Innovation and Speed

June 6, 2025
Add A Comment

Comments are closed.

Recent Posts

Vortex uses NVIDIA Jetson to innovate medical imaging with CT-similar ultrasound.

June 6, 2025

2025 Best Free Cloud Mining

June 6, 2025

Sei Development Foundation: Use of US Innovation for Global Block Chain

June 6, 2025

Analyst Michaël Van de Poppe says Bitcoin is getting higher.

June 6, 2025

Does Ethereum start their business? MorningStar Candlestick Pattern tells the story

June 6, 2025

Solana’s Journey: Promotion of Challenge, Innovation and Speed

June 6, 2025

Ether Leeum’s imminent brake out in major chart patterns

June 6, 2025

Bittensor increases rapidly after 118 subnets in the $ 1,000 TAO price guess.

June 6, 2025

Bitcoin’s $ 100k drop in caught many merchants for many merchants.

June 6, 2025

As the ETF rises, Bitcoin Eye Major Rally -but this can ruin the party.

June 6, 2025

Secure the Treasury in the BNB chain and launch VANECK

June 6, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

Vortex uses NVIDIA Jetson to innovate medical imaging with CT-similar ultrasound.

June 6, 2025

2025 Best Free Cloud Mining

June 6, 2025

Sei Development Foundation: Use of US Innovation for Global Block Chain

June 6, 2025
Most Popular

Bitcoin: The World’s First Decentralized Organization

November 24, 2023

JPMorgan expects the spot Ethereum ETF to begin trading ‘well ahead of November’.

May 25, 2024

Crypto Casinos and Their Enduring Resilience

December 19, 2023
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.