Ethereum (ETH) options traders are maintaining a bullish stance despite recent market turbulence, according to analysts at Kaiko. The put-call ratio dynamics in May suggested a bearish sentiment, with more puts than calls being bought. However, this trend reversed in June as the ratio declined, indicating a shift towards bullish bets. Trading volumes at higher strike prices for December expiries also show optimism, with a significant number of calls exceeding current price levels.
The positive shift in trader sentiment can be attributed to recent regulatory developments, particularly the SEC concluding its investigation into ConsenSys regarding Ethereum’s status as a security. This likely contributed to the bullish outlook among traders. Additionally, spot Ethereum exchange-traded funds (ETF) are expected to start trading in the US on July 2nd. Bloomberg ETF analyst Eric Balchunas has confirmed this information. Experts believe this could trigger a price leap for Ethereum, with the potential for a significant increase in price following the start of ETF trading.
Despite the possibility of some upward movement already being priced in, there is a high chance that ETH could experience a sharp price increase with the commencement of ETF trading in the US. This optimism is reflected in the trading volumes at higher strike prices for December expiries, where a large number of calls exceed current price levels. The recent bullish sentiment among options traders is supported by these factors, indicating a positive outlook for Ethereum in the near future.
Overall, the market sentiment for Ethereum appears to be bullish, with traders maintaining a positive stance despite recent turbulence. The shift towards bullish bets in options trading, along with recent regulatory developments and the upcoming launch of spot Ethereum ETFs in the US, are contributing to this positive sentiment. Experts believe that this combination of factors could lead to a significant price increase for Ethereum, potentially triggering a price leap following the commencement of ETF trading.
The recent reversal in put-call ratio dynamics, along with the increased trading volumes at higher strike prices for December expiries, further support the optimistic outlook for Ethereum. As traders continue to maintain a bullish stance and anticipate a price increase, the market for Ethereum options remains positive. With the potential for a sharp price increase post-ETF launch, Ethereum traders are hopeful for a continued bullish trend in the coming months.
