- Ethereum options trading volume hit an all-time high in January.
- The coin showed a decrease in open interest in the futures market.
Ethereum (ETH) options trading volume has surged to an all-time high, hitting $17.9 billion so far this month, according to The Block Data. dashboard.
This is a 2% increase over the $17.7 billion trading volume recorded in the coin options market in December.
Source: The Block
An evaluation of the coin’s put-call ratio found that a significant number of the 932,000 Ethereum options contracts expiring on January 26 were bets on price increases.
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An asset’s put-call ratio measures market sentiment for that asset. This is done by dividing the number of open put options (bets that the price will fall) by the number of open call options (bets that the price will rise).
A put call ratio of 0.31 means that for every 100 ETH call options purchased, only 31 puts were purchased. This shows that ETH derivatives market participants expected the price to rise or at least remain stable at expiration.
January 26 Options Data
94,000 BTC options are set to expire with a put-call ratio of 0.51, Maxpain points of $41,000, and notional value of $3.75 billion.
932,000 ETH options are scheduled to expire with a put-call ratio of 0.31, Maxpain points of $2,300, and a notional value of $2.07. pic.twitter.com/EifV6kgUBz— Greeks.live (@GreeksLive) January 26, 2024
ETH futures market
In the coin futures market, there are different approaches adopted by traders. AMBCrypto found that ETH futures open interest has decreased by 11% since January 17th. According to data from , it fell from $8.7 billion to $7 billion at press time. coin glass.
Source: Coinglass
When an asset’s open interest decreases in this way, it means that fewer new futures contracts are opened due to lower price volatility and weaker positive sentiment. Alternatively, a trader may simply close an existing position without opening a new one.
An evaluation of some volatility indicators confirmed that price fluctuations have decreased since mid-month.
For example, ETH’s Average True Range (ATR), which measures market volatility by calculating the average range between high and low prices over a specific period, was found to be 100.50 at press time. It has fallen 15% since January 13th.
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If you see ATR falling, it means price movements are becoming less important. Following a similar trend, the coin’s Chaikin volatility decreased by 160% over the same period.
Source: TradingView
This indicator also measures price volatility by tracking the difference between the highest and lowest price of an asset over a specific period of time. When falling, volatility is low.