As a seasoned researcher with a keen eye for trends and patterns in the crypto market, I find the recent data from Derive’s DeFi options protocol intriguing. The skepticism among traders towards Ether (ETH) is noteworthy, with a significantly higher number of calls sold compared to calls bought. This suggests that traders are cautious about ETH’s potential for significant price gains in the near future.
In light of a recent optimistic change in Bitcoin (BTC), data from a decentralized financial (DeFi) options platform indicates that traders have become less confident about Ethereum’s (ETH) potential success.
According to Nick Forster, the founder of Derive, there are approximately 2.5 times more call options (permitting the buyer to purchase Ethereum) that have been sold compared to those that have been bought. This suggests that traders might think the growth potential for Ethereum is limited.
Traders see ETH’s potential for significant price gains as ‘limited’
As per the report, based on Derive’s data, the percentage of Ether Calls Sold (where traders sell call options anticipating no change or a decrease in price) was 34.5% by the end of September. On the other hand, Ether Calls Bought (in which traders buy call options, predicting an increase in Ether’s price) stood at 15.5%.
In simpler terms, Forster suggested that the modest volume of trades suggests that Ethereum’s capacity for substantial price increases might be restrained within the immediate future.
At the same time, Forster highlighted a considerable amount of Bitcoin Open Interest (OI) at the $75,000 and $100,000 option exercise prices. This implies that traders are strategically setting themselves up for substantial price fluctuations.
He added these “could act as key barriers or breakout levels.”
It’s worth noting that there’s a significant imbalance in Ethereum open interest, where calls (bets on price increase) are being sold about 2.5 times more than they’re being bought, according to Forster. This seems to indicate that traders believe the potential for ETH price growth may be somewhat restricted at this time.
BTC versus ETH will be “key to watch” ahead of US election
He also emphasized that the growing difference between Bitcoin and Ethereum could become a significant factor to observe as we approach the U.S. Presidential Election scheduled for November 3rd.
Currently, Ether is being exchanged for approximately $2,615 per unit, marking a 7% increase from its price on October 7th, as indicated by data from TradingView.
Meanwhile, other data points to long-term confidence among Ethereum traders.
October 8th saw CryptoMoon reporting that approximately one-third of all Ethereum tokens are being held in staking, indicating a strong, prolonged interest from investors in this digital asset and the potential rewards it offers.
At the time, onchain data provider IntoTheBlock said that 28.9% of all Ether had been staked.
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2024-10-15 20:28