Ethereum
350,000 Ethereum Options Expiring Today With a Max Pain Point of $3,200, What’s Ahead?
The launch of the Ethereum Spot ETF Thursday, May 23, turned out to be a news sell-off for ETH. At press time, the Ethereum price was trading down 4% at a price of $3,650 with a market cap of $438 billion. Interestingly, the current ETH price action coincides with the weekly options expiration.
350,000 Ethereum options expire
According to data from Greeks.live, approximately 350,000 Ethereum (ETH) options are set to expire soon, with a Put Call ratio of 0.58, a Maxpain point of $3,200, and a notional value of $1.3 billion.
ETH recently overtook Bitcoin’s rally, driven by progress in ETF development. This surge led to a remarkable 20% increase in a single day. The implied volatility (IV) of short-term options peaked at 150% at one point, far exceeding Bitcoin’s current IV for the equivalent period.
Currently, a notable divergence between Bitcoin (BTC) and Ethereum (ETH) is evident. Analysis of block trading and market structures indicates sustained bullish sentiment for ETH. However, maintaining consistently high IV levels for each major term proves difficult. Therefore, the use of calendar spreads may prove to be a more favorable strategy in the future.
Courtesy: Greeks.live
Just before the approval of the Ethereum ETF on Thursday, the ETH price saw high volatility leading to over $132 million in long liquidations.
ETH exchange wallet deposits increase
In an analysis provided by crypto analyst Ali Martinez, the growing number of Ethereum ($ETH) deposits in cryptocurrency exchange wallets suggests a potential sell-off or price increase scenario. ETH Profit Taking activity. Additionally, the Tom DeMark (TD) Sequential Indicator is reporting a sell signal on the Ethereum daily chart.
The current green nine candlestick on the daily chart indicates a potential increase in selling pressure, which could cause a retracement lasting one to four daily candlesticks, or potentially initiate a new countdown phase before the recovery of the upward trend.
Courtesy: Ali Martinez
The recent Ethereum Price the correction provides a dip buying opportunity for long-term holders. Although the SEC has approved 19b-4 filings for the Ethereum ETF, it has not yet authorized the S1 filing, which will take a few more weeks for the Ethereum ETF to begin trading on exchanges.
“There is a waiting time until the listing takes place, and then the inflow will determine whether there is a strong upward continuation,” writes crypto analyst Michael van de Poppe.