Keep dreaming! Options data suggests $560 Ethereum price won’t happen – Cointelegraph

Keep dreaming! Options data suggests $560 Ethereum price won’t happen - Cointelegraph

This week, Bitcoin (BTC) and Ether (ETH) prices reached new highs as a slew of bullish news continued to pump investors’ hope that the next crypto-bull market will mirror the one seen in 2017. 

Many novice traders simply follow spot prices on the major crypto exchanges to gauge the direction price might take. However, reviewing options markets data can provide additional relevant insights on market sentiment.

Looking at the most recent activity in Bitcoin options, it is clear that some trades occurred on strikes that seemed improbable even for the most bullish analysts. These trades include 20 BTC CME December call options with a $70,000 strike and the 56 BTC worth of $100,000 December strikes at LedgerX.

These anecdotal trades might not reflect the broader market conditions, but oddly enough, the highest Ether options contract for December 2020 stands at $1,120. This trade is undoubtedly bullish considering there are only 42 days left until expiry, but not even close to the BTC options pending 330% upside or higher.

It is worth noting that Deribit also holds Ether call options for March 2021, with strikes trading up to $1,600. Although this effect might have been caused by the Ethereum 2.0 launch date on Dec. 1, its upside stands at 230%. This is considerably lower than Bitcoin’s options.

ETH options open interest by strike, in ETH thousands. Source: Skew

As the data above shows, out of the $613 million in Ether options open interest, a mere 28% stands at $460 and higher. This situation can be partially explained by the 23% rally that occurred over the past 10 days, indicating that traders were not expecting these prices.

It’s also important to remember that options until March 2021 are listed on most exchanges. Therefore, some optimism ought to be
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