Ethereum Options Set All Time High Records Exceeding $7 Bln.

Ethereum Options Set All Time High Records Exceeding $7 Bln.

2021-12-05 | Mike Hallen

Ethereum Options Set All Time High Records Exceeding $7 Bln.

According to the data by Wu Blockchain, Ethereum options have set a new all-time high as the cryptocurrency continues to navigate in the local bullish rally that began at the end of November. Contract Open Interest Is Increasing - Let's Know Why? Ethereum (ETH) options are now trading at an all-time high in terms of open interest, which stands at $7 billion. On December 31, about 700,000 options with a "bullish" Put/Call ratio of 0.47 will be delivered. The existing open Ethereum contract with an expiry date of December 31 has an estimated maximum pain price of $2,500.Increased open interest in options at the end of the year is nothing new for Ethereum. Ethereum open interest often rises around the end of the year as the cryptocurrency market becomes more volatile and traders seek to hedge their positions. What Does Large Open Interest Indicate To Traders? Options are typically used to reflect current market circumstances. Because Ethereum is in both short and long-term positive trends, call (buy) options are dominating the market, with the majority of traders betting on the asset's price rising to $5,000. However, while some traders use options for speculation, others use them to hedge their positions. Traders hedge their holdings in the event of unforeseen market volatility by purchasing put options at prices such as $4,300. Ethereum's previous all-time high is still $4,880, and more analysts predict the market's second-largest cryptocurrency to hit the long-awaited milestone before the end of the year when most altcoins have traditionally set new highs.

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