Monthly Archives: January 2022

Ethereum Options Data Shows Pro Traders Expect Strong Resistance At $3,600

The price of Ether(ETH) has skyrocketed 13% from its 9th January rate at a meager $2,950. The larger bearish movement looks very similar to the BTC price, regulatory policies, and the tight US Federal Reserve Policies are also at blame for this movement.

BTC and ETH have been under pressure for quite a long time as regulators are focused on the more stablecoins. On November 1st, US Treasury Department asked Congress to make the stablecoins fixed to the US banks,

Currently, this descended channel formation in mid-November has a $3,850 resistance. The average network transaction fees also increased above $50. Regardless of this shift, the investing bulls did miss out on the opportunity of securing about $300 million profit on January 14th.

The call to put ratio is an average of 89% due to the $380 million call(buy) instruments. These have larger open interest rates compared to the $200 million puts (sell) options for the investors. This 1.89 measure can be deceiving as the recent ETH price drop is one of the major causes.

Suppose someone buys ETH at $3,300 at 8:00 am UTC on January 14th. Only $24 million options will be available with no value in the right to buy ETH at $3,300 if the price is below that. This price action can bring variable calls vs. puts, which can either be favorable to the market or bring a massive loss. Nonetheless, this demands more complex investment strategies for the investors. If the price were above $4,500, there would still be a chance. However, the existing scenario is about a 6% positive move from the $3,300 to $3,500, generating a $60 million advantage. The efforts will be indeed towards keeping the price above $3,300 for the right balance.