Bitcoin
BTC$22 939.67

-3.65%

Ethereum
ETH$1 680.06

-5.25%

Tether
USDT$1.000237

0.01%

USD Coin
USDC$0.999848

0%

Binance Coin
BNB$319.45

-1.52%

Binance USD
BUSD$1.000292

0%

Ethereum bulls control 100% of this week's $470M ETH options expiry


04 May 2021

#Ethereum

Ether's spectacular rise to $3,300 has rendered all of the bearish put options worthless ahead of this Friday's $470 million expiry. On May 7, a total of $470 million in Ether (ETH) options are set to expire, and "slaughter" is really the only word that describes what is about to happen to bearish ETH traders. Currently, almost every single one of the 75,909 put (sell) option contracts will become worthless if Ether manages to remain above $3,100 until Friday 8:00 am UTC.

Ether's growth has been fueled by the growth of decentralized finance (DeFi), which has recently surpassed $60 billion in total value locked, according to DeBank. Yat Siu, chairman and co-founder of Animoca Brands, perfectly described the scene: "DeFi will shape finance in incredibly fundamental ways. Perhaps the biggest way (including in China) is in financial education." Siu added: "Imagine a world where financial inclusion is not just about having a bank account, but about being able to easily and effectively participate in various capital opportunities."

While this may have sounded futuristic one year ago, the Ethereum network opened the doors for these markets in a very short time. Regarding May 7's options expiry, the neutral-to-bearish puts currently have a $250 million open interest but tend to become worthless as the settlement day approaches.

While the apparent put-to-call ratio favors the more bearish Ether put options by 13%, when analyzing the target price (strike) for those derivatives, the activity above $3,100 is nonexistent. Ether's 55% rally over the past 30 days caught bears by surprise as the protective puts mainly focused on $2,800 and lower.

Bulls, on the other hand, are usually highly optimistic. The call option contracts have a 66,350 open interest, equivalent to $220 million. Currently, 13.5% of those neutral-to-bullish options contracts have strikes of $3,200 and higher.

However, considering that the call options completely dominate above $2,700, bulls have incentives to positively pressure the price as the May 7 deadline approaches. Unlike futures markets, there are few benefits to rolling over contracts that are now almost worthless. As shown above, the $2,450 and lower-strike ETH put options are offered below $10 each. Meanwhile, some of them don't have any bids at all; therefore, for Ether bears, it makes sense to throw in the towel for this week's expiry instead of wasting resources to salvage the poorly cast bets.

For those questioning Ether's current valuation, Cointelegraph recently showed how the cryptocurrency might be less risky than holding traditional dividend-paying stocks such as Roche or Procter & Gamble. Moreover, the spectacular growth of decentralized applications and daily Ethereum network transfers and transactions should fuel Ether bulls to aim even higher for the end-of-month expiry.


Related

Influencers Talk about a Very Long Crypto Spring
Influencers Talk about a Very Long Crypto Spring
Ethereum's bearish U-turn? ETH price momentum fades after $1.6K rejection
Ethereum's bearish U-turn? ETH price momentum fades after $1.6K rejection
Ether price stalls at $1,630 after gaining 50% in under a week
Ether price stalls at $1,630 after gaining 50% in under a week
Institutional investor sentiment about ETH improves as Merge approaches
Institutional investor sentiment about ETH improves as Merge approaches
Bitcoin and Ethereum: More Upside
Bitcoin and Ethereum: More Upside
Cryptocurrencies: Run or Wait?
Cryptocurrencies: Run or Wait?
MultiBank Group Leverages Its Power to Increase Global Crypto Adoption
MultiBank Group Leverages Its Power to Increase Global Crypto Adoption
Bitcoin and Ether reached two of three bears' targets
Bitcoin and Ether reached two of three bears' targets
Ethereum double Doji pattern hints at a 50% ETH price rally by September
Ethereum double Doji pattern hints at a 50% ETH price rally by September

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 78.4% 35 $22 939.67 -3.65% -0.43% $438 548 196 646 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 68.8% 68 $1 680.06 -5.25% 2.68% $204 805 525 877 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 95.6% 1 $1.000237 0.01% 0.01% $66 533 700 340 USDT 7 days price change
4 USD Coin (USDC) USDC USD Coin predictions 96% 1 $0.999848 0% -0.03% $54 011 865 153 USDC 7 days price change
5 Binance Coin (BNB) BNB Binance Coin predictions 71.2% 62 $319.45 -1.52% 10.96% $51 538 467 752 BNB 7 days price change
6 Binance USD (BUSD) BUSD Binance USD predictions 95.2% 1 $1.000292 0% 0.01% $17 756 480 503 BUSD 7 days price change
7 XRP (XRP) XRP XRP predictions 77.6% 36 $0.362409 -3.72% -2.15% $17 519 965 274 XRP 7 days price change
8 Cardano (ADA) ADA Cardano predictions 72% 50 $0.510338 -4.17% 0.93% $17 218 297 210 ADA 7 days price change
9 Solana (SOL) SOL Solana predictions 73.6% 44 $39.52 -6.65% 2.24% $13 768 809 765 SOL 7 days price change
10 Lido stETH (STETH) STETH Lido stETH predictions 93.6% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
11 Polkadot (DOT) DOT Polkadot predictions 68.8% 62 $8.65 -4.95% 7.88% $9 563 739 618 DOT 7 days price change
12 HEX (HEX) HEX HEX predictions 64.8% 70 $0.054819 1.28% 19.27% $9 506 188 307 HEX 7 days price change
13 Dogecoin (DOGE) DOGE Dogecoin predictions 81.6% 28 $0.068036 -7.62% 1.11% $9 026 356 228 DOGE 7 days price change
14 Avalanche (AVAX) AVAX Avalanche predictions 70.4% 55 $27.33 -3.28% 16.23% $7 788 396 850 AVAX 7 days price change
15 Dai (DAI) DAI Dai predictions 92% 1 $0.999960 0.02% -0.02% $7 525 786 587 DAI 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2022 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.