The Ethereum (ETH) options market for June is currently showing a notable interest in higher strike prices, particularly those exceeding $3,600. Traders seem to be focusing on call options surpassing this price level, indicating a bullish sentiment towards Ethereum’s near-term trajectory. Among these optimistic bets, the most favored strike price appears to be a lofty $6,500. Options, as derivative contracts, grant traders the right (but not the obligation) to buy (calls) or sell (puts) the underlying asset at a specified strike price by the expiry date.
The aggregate open interest in Ethereum options is heavily skewed towards calls, signifying a preference for higher strike prices in the market. This concentrated interest, especially above the $3,600 mark, suggests that a significant portion of traders is positioning for Ethereum to ascend to higher levels by the end of June. According to Deribit data, approximately 622,636 Ethereum call contracts are set to expire by the end of June, representing a notional value surpassing $1.8 billion. The substantial open interest is particularly clustered around the $6,500 strike price, with a notable notional value of $193 million.
Despite the optimism reflected in the options market, Ethereum is currently experiencing a slight downturn. It has seen a decrease of 5.4% over the past week and 2.2% in the last 24 hours, trading below $2,900. This downturn underscores the importance of upcoming market catalysts that could significantly impact Ethereum’s price. One such crucial event is the upcoming decision by the US Securities and Exchange Commission (SEC) regarding several applications for Ethereum-based Exchange-Traded Funds (ETFs), expected by May 25th. The outcome of this decision could either attract institutional investments into Ethereum, leading to a price surge, or dampen bullish sentiment and trigger further pullbacks.
Technical Analysis and Rebound Potential
From a technical analysis perspective, there are indications pointing towards a potential rebound in Ethereum’s price. The “Bullish Cypher Pattern,” identified by analyst Titan Of Crypto, suggests that Ethereum might be at a turning point. Currently, Ethereum is at the 38.2% Fibonacci retracement level, a significant support zone in many bull markets. Historical data shows that this level has often served as a launchpad for upward price movements, hinting at the possibility of Ethereum gearing up for a substantial rise in the near future. The analyst emphasizes the importance of the 38.2% Fibonacci retracement level and expects a bounce from this level, especially in a bull market scenario.
Ethereum option traders are displaying a bullish sentiment towards the cryptocurrency, with a strong focus on higher strike prices and call options. Despite the current price decline, market dynamics and upcoming events could play a crucial role in shaping Ethereum’s future price trajectory. Technical analysis also suggests the potential for a rebound in Ethereum’s price, signaling optimism among traders and analysts in the cryptocurrency market.