Amid recent positive sentiment shifts for Bitcoin (BTC), recent data from the decentralized finance (DeFi) options protocol shows traders are becoming more skeptical about the performance of Ethereum (ETH).
“ETH is selling at nearly 2.5x the number of currencies being bought, which suggests traders may believe ETH’s upside potential is limited,” Derive founder Nick Forster said in an Oct. 13 report reviewed by Cointelegraph. “He said.
Traders view ETH’s potential for significant price appreciation as ‘limited.’
Citing data from Derive, the report said Ether Calls Sold (where traders sell call options expecting prices to stay the same or fall) were up 34.5% at the end of September, while Calls Bought (where traders sell call options expecting prices to stay the same or fall) were up 34.5% at the end of September. (when you buy a call option expecting the price to fall). The Ethereum price increase rate was 15.5%.
ETH put call trading distribution chart. Source: derived/amberdata
“The relatively small number of call options purchased further supports the notion that ETH’s potential for significant price upside may be limited in the near term,” Forster explained.
Meanwhile, Forster pointed out that there is a significant amount of Bitcoin open interest (OI) at the $75,000 and $100,000 strike prices, which are the specific prices at which the options can be exercised, suggesting that traders are positioning themselves “for a significant move.” I did it.
He added that this “could act as a major barrier or breakout level.”
“Interestingly, the skew in ETH open interest, with almost 2.5 times more calls sold than bought, suggests that traders see limited upside at the moment,” Forster explained.
BTC vs ETH will be a “key of interest” ahead of US elections
He also claimed that the “differences” between Bitcoin and Ethereum will be “key of interest” as the US presidential election on November 5 approaches.
relevant: Vitalik Buterin ponders Ethereum’s future after its merger.
At the time of publication, Ethereum is trading at $2,615, up 7% since October 7, according to TradingView data.
Ether prices are expressed in USD. Source: TradingView
Meanwhile, other data points to the long-term confidence of Ethereum traders.
On October 8, Cointelegraph reported that nearly a third of all Ethereum was staked, as token holders showed long-term interest in the crypto asset and the rewards they could receive.
At the time, on-chain data provider IntoTheBlock stated that 28.9% of all Ethereum was staked.
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This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.