Key takeaways:
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Traders, those clever foxes, employ bearish ETH options to hedge after Ether’s wild 49% jump in May. 🦊📈
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The season of altcoin ETF listings looms, threatening ETH’s throne and its market dominance — brace yourselves! 👑💥
Ether (ETH) soared a glorious 10% between Monday and Tuesday, reaching heights not seen in over 15 weeks. Yet, despite this ascendancy, ETH stubbornly clings below the $2,800 summit, like a donkey refusing to climb higher. This stubborn resistance has become the favorite pastime of traders eager to hide their fears behind layers of protective options.
In addition to the usual call (buy) and put (sell) options, traders craft clever combinations, like a chef mixing ingredients, to maximize gains or minimize losses. Keeping an eye on these demand patterns offers a peek into the minds of those who play the market like a grand piano.
Traders buy ETH downside risk protection—like a cautious spouse
The open interest in ETH options has grown from $6.3 billion to a whopping $8.3 billion since early April — clearly, the bigwigs are getting involved. Deribit, that old faithful exchange, rules the roost with a 72% share. Now, let us analyze the tug-of-war: are traders leaning bearish or bullish?
One popular trick is the “hort risk reversal,” a fancy term for buying a put and selling a call—like betting on a fall while collecting a fee upfront. Genius? Perhaps. Or just trader folly dressed in fancy clothes.
Another favorite is the “bear diagonal spread,” which is like betting that prices will tumble soon, but in a budget-friendly way. Sellers offload near-term calls while buyers buy longer calls—risky business, but with time on their side!
Optimism among Ether fans is palpable as June 27 approaches, with 63% of open interest in call options. Surprisingly, 92% of puts are at $2,700 or below — if ETH stays above that, the puts expire worthless, much like Uncle Ivan’s old boots.
But wait! Amid this cautious optimism, traders fret about ETH’s 49% surge since May and the rising threat from competitors like Solana and XRP. Will their shine dull if the SEC okay’s ETFs for these rivals? The plot thickens, and the shadows lengthen. 😏
Bitcoin steals ETH’s thunder — the milkshake thief of altcoins
Adding salt to the wound, Trump’s media empire announced a $2.5 billion move to pile into Bitcoin, setting the stage for a glorious showdown of digital giants. Meanwhile, whispers from the White House hint at a “Strategic Bitcoin Reserve,” promising that the community shall be “extremely pleased.” Or so they say.
Despite all the hedging happening in ETH options, traders are not necessarily preparing for a collapse. No, most June 27 puts are below $2,700, giving ETH room to breathe — or so they hope. It’s a dance of neutrality and cautious optimism, like a cat teetering on the edge of a rooftop.
This article is for entertainment and info only; do not take it as legal or financial advice. The thoughts expressed are solely those of the author, not CryptoMoon or anyone else with a fancy title. 😉
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2025-06-11 01:36