Ether Bear’s problems with $ 250 million worth of options may be worthless at expiration today

Ether price chart | Source: TradingView

Regulatory fear limits ether price growth

Negative reports of increased regulatory oversight of cryptocurrencies may have impacted the market last month, especially as China has completely banned all crypto-related activities.

Major exchanges like Binance and Huobi have suspended most of their services in mainland China, and several large Ethereum mining pools have also had to close entirely.

And not only that, Ken Griffin, founder of Citadel Securities, one of the largest market makers in the world called They do not trade cryptocurrencies due to the regulatory uncertainties in the industry. Anatoly Aksakov, chairman of the Financial Markets Committee of the Russian State Duma, also emphasized the tightening of the regulations to protect private investors.

With the barrage of negative news in it, it’s understandable why the bears put 86% of their stakes on $ 3,200 or less. In the past few weeks, however, these put options have depreciated rapidly.

Today will be a test of strength for the bears as any price over $ 3,500 would mean a carnage with a dominance of call options.

• From $ 3,100 to $ 3,300: 14,300 buy orders vs. 9,800 sell orders. The net result is a balance between the bulls and the bears.
• From $ 3,300 to $ 3,500: 21,650 buy orders vs. 1,900 sell orders. The net result favors the cops with $ 66 million.
• From $ 3,500 to $ 3,700: 32,050 buy orders vs. 0 sell orders. The net result favors the bulls with $ 115 million.
• From $ 3,700 to $ 3,900: 43,300 buy orders vs. 0 sell orders. The bulls dominate at $ 165 million.

This rough estimate looks at calls that are used in bullish and put strategies specifically for neutral to bearish trades. Unfortunately, life is not that simple as more complex investment strategies may be in the works.

Bears have a $ 47 million advantage if they can push ETH below $ 3,500, as the above estimate shows. The cops, on the flip side, can add $ 49 million to their edge by increasing the Ether price to over $ 3,800 before it expires.

With things stabilizing for the moment, the bulls have absolute control of the option on expiry and the momentum for both sides appears to be in equilibrium. Hence, the bears should give up and prepare for the options expiration next week.

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Mr. Teacher

According to Cointelegraph