The main dishes to remember:
The price of ether (ETH) jumped 10% between Monday and Tuesday, reaching its highest level in more than 15 weeks. Despite this rally, ETH has always struggled to cross the brand of $ 2,800 in last month. This level of resistance coincided with an increasing use of downward protection strategies in the ETH derivative markets.
In addition to standard (buy) and put (sell) call options, traders often use instrument combinations to design strategies aimed at maximizing higher levels at certain levels or reducing exposure to losses. Consequently, monitoring demand for these options offers an overview of how professional traders position themselves.
Merchants buy protection against risks lowering ETH
The interest open in ETH options increased from $ 6.3 billion to $ 8.3 billion between early April and June 9, reporting stronger institutional involvement. Deribit remains the dominant exchange, holding a market share of 72%. Consequently, it is essential to analyze the imbalance of flows between the lower and neutral trades in cultivus.
One of the most notable strategies negotiated on the drunken in the last two weeks has been the reversal of HORT risks. This configuration benefits from Bearish price movements while collecting a clear bonus in advance.
Another popular strategy is the diagonal spread of the bear, which expresses the short -term lowering feeling in a profitable way. This involves selling a short -term purchase option and buying a longer -term call for a higher strike, aimed at benefiting from temporal decrease and increased implicit volatility.
The ether bulls are optimistic about the expiration of the monthly options of June 27, especially since the appeal options (buy) represent 63% of the total open interest. Currently, 92% of ether options (SELL) are set at $ 2,700 or less, levels that would expire without value if ETH is negotiated above this brand at the expiration.
Part of the prudence of the market can be awarded to the increase in prices of 49% of Ether since May, while competitors like Solana (soil) and XRP have won 8% and 2%, respectively. The merchants fear that the competitive point of ETH can underestimate whether the American Commission for Securities and the Exchange approves the negotiated stock markets (ETF) for rival altcoins.
Bitcoin continues to drink the Milk-Shake of Altcoin
The concerns about Ether’s institutional call also emerged after Trump Media and Technology Group, former US President of the former US president Donald Trump, announced a debt and a capital of $ 2.5 billion to build a Bitcoin treasure.
In relation: Growth of the Ethereum network, ETH ETH ETH and price entrances attract new investors
Adding to the change of story, Bo Hines, executive director of the Council of Councilors of the Chairman of the White House on digital assets, said on June 9 that the details of the American Bitcoin Strategic Reserve would be shared “in short time”, stressing that “the community will be extremely satisfied”.
Despite the increase in demand for protection against the drop in ETH options, this does not necessarily imply traders to bet on a drop in prices. With most of the investment options on June 27, targeting levels less than $ 2,700, neutral-to-bullins strategies seem to have the upper hand, offering a backdrop for the price of ETH.
This article is for general information purposes and is not intended to be and must not be considered as legal or investment advice. The points of view, the thoughts and opinions expressed here are the only of the author and do not reflect or do not necessarily represent the opinions and opinions of Cointellegraph.
