Market analysts have identified a significant concentration of open interest in ether options at the $5,000 strike price, set to expire at the end of June.
This clustering suggests a strong bullish sentiment among traders who are betting on the price of ether to rise.
Data from the Deribit derivatives exchange reveals that the highest open interest for ether options is currently in the June $5,000 call options.
Traders are employing call spreads, buying call options at the $4,000 strike price and selling call options at the $5,000 strike price. This strategy indicates they are positioning for ether’s price to rise within this range.
Rachel Lin, co-founder of SynFutures, noted, “The highest open interest for ether is now in the June $5,000 call option, highlighting trader optimism.”
QCP Capital’s recent analysis supports this outlook, showing substantial purchases of $4,000 to $5,000 call spreads for the end of June.
The firm observed, “There is clear bullishness in the ether market as traders position for potential gains.”
Further indicating a positive market sentiment, the put-call ratio for ether options stands at 0.56, meaning call options significantly outnumber put options.
This ratio, derived from Deribit’s data, points to a market expecting higher prices.
However, not all indicators are uniformly bullish.
The Block’s Data Dashboard indicates a rising put-call ratio over the past week, suggesting some traders are hedging against potential downsides, especially with the uncertain launch timeline of ether spot exchange-traded funds (ETFs) recently approved by the U.S. Securities and Exchange Commission.
Ether’s price saw a modest increase of 0.22% over the past day, trading at $3,728 early Friday morning. The broader crypto market, as reflected by the GM 30 Index, also saw a slight uptick of 0.3% to 143.29.
While the concentrated open interest in ether options at $5,000 shows strong bullish sentiment for June, market dynamics and external factors like ETF launch timelines may introduce volatility.
