530 Interactions, 2 today
On May 9, 2021, Ethereum achieved an all-time high worth of $4375, but the euphoria felt by investors was fleeting. Within a week, it fell by 56%, to $1880, before plunging again to $1728. Now, the asset has recovered above $2000 in the last several weeks, but the industry as a whole remains negative.
Moving forwards, the 25th of June is crucial since it may help Ethereum achieve its ATH range.
June 25th; 2nd Quarterly Ethereum Options expiry
According to Skew, 646,300 ETH Options will expire on June 25th, valued more over $1.5 billion in Open-Interest. The entire amount of ETH that will expire in June is presently valued at $3.6 billion.
It is also worth noting that the aforementioned expiration is 33% bigger than the one that occurred on March 26. Here’s how the market performed following the 1st Quarterly Expiry.
Ether’s value has plummeted by 15.35 percent on the charts five days before the expiry. However, between March 26 and April 15, the price of ETH increased by 60.70 percent before a slight pullback. The asset then continued to rise until the second week of May. Keeping the impacts of the futures market in mind, speculators believe the expiry will have a similar influence on the price of ETH.
Where is the dividing line between the Bulls and the Bears?
According to Bybt.com statistics, there are now a large number of call options at $2,200 with higher strikes available. This means that Ether’s price must be more than $2,200 at the time of expiry for these 97k call options to be exercised.
Similarly, 75k put options with a strike price of $2,100 are more defensive, as this is where the line is formed between bullish and bearish traders. At the time of writing, Ethereum is stabilising at $2,400, indicating that the bulls have the upper hand, but a lot can happen in a week.
Investors should keep a close eye on this quarterly expiration since the continuance of a bullish cycle for Ethereum may be dependent on it. From a bullish/bearish standpoint, the market structure for Ether remained unclear. As a result, the expiry date may play a rather major role in determining the future course of action.