Ethereum options market advantage shifted to bulls

The past few weeks have been very active for Ether (ETH). Crypto money has fluctuated between $ 2,000 and $ 2,650. Ether’s 20 percent crash on April 17 resulted in a $ 1 billion worth of long positions liquidated and investors away from risk.

Ethereum Price Index: How many TL (ETH TL) for Ether?

Ether (ETH) price on Coinbase. Source: TradingView

On the other hand, with the cryptocurrency gaining 28 percent in value over the past few days, the open positions of Ether futures reached $ 8.2 billion, just 5 percent below their all-time high on April 15. Similarly, the options market has increased by 45 percent since its due date on March 25.

Moreover, the net worth locked on Ethereum smart contracts also reached a record high of $ 54.2 billion, led by Uniswap, Compound, and Maker.

Net worth locked in the Ethereum network. Source: DeBank.com

There was a 154 percent increase in locked net worth, while average transaction fees remained above $ 8. This situation shows that the competition is extremely high.

Only 22 percent can be traded

While the open positions of Ether options reached their all-time high of $ 4.2 billion, up to $ 930 million of them will expire on April 30. As always, Deribit leads the open positions with a 90 percent share.

It should be noted that at the expiry date, not every option contract will be traded, as some transaction prices no longer seem illogical.

Options fall into two categories. Call options allow traders to buy Ether at a pre-determined price on the maturity date. Call options generally reflect a neutral or bullish expectation.

Put options are used in hedging strategies against negative price fluctuations.

You may be interested in: What is a Bitcoin option? How do option contracts work?

In order to understand the balances in the options market, the size of the call and put options at each trade price must be compared.

ETH options at Deribit with a maturity date of 30 April. Source: Laevitas.ch

Put options at $ 2,400 and below make up 91 percent of these options. The transaction price of more than half of the call options is set at $ 2,880 and above.

Bulls lead with $ 115 million

All options above $ 2,240 favor the leading bulls with an open position of $ 115 million. The weight of call options can double if the coin reaches $ 2,880.

For put options to be advantageous, the price of Ether must fall below $ 2,240 with a miracle drop of 17 percent.

Therefore, the April 30 due date is not expected to have a surprising effect on the Ether price in the current situation.

The opinions and views expressed herein are those of the author alone and do not reflect the views of Cointelegraph. Every investment involves risk. Do your own research before making a decision.

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