Ethereum bulls are chasing $ 2,200 before $ 230 million ETH options expire

Ether (ETH) ‘s $ 1.5 billion monthly expiration date on June 25 was slightly auspicious for the bears, and at the time Cointelegraph reported that the $ 2,200 price point was crucial, up 73% of the put options to remove from neutral to bearish.

However, the bulls have been unable to maintain their advantage as the expiry price is near $ 1,950. In the end, the calls protect more than the neutral upside calls of up to $ 30 million.

Fast forward to July and after a notable 10% rally, the price of Ether struggled again to hold the $ 2,100 support. Bitcoin’s negative performance of 3.5% could partially explain last week’s price movement, but the London hard fork planned for this month could also be responsible.

The proposed EIP-1559 would limit gas charges and make them more predictable for users. However, the miners’ income will be negatively affected. Any feedback from miners could delay Eth 2.0 even further, which could be the reason for the recent price weakness.

Finally, the regulatory pressure can also be attributed to the negative sentiment. For example, the US Financial Crimes Enforcement Network announced that cryptocurrencies will be a top national priority to combat terrorist financing and ensure adequate money laundering through anti-terrorism policies.

Connected: Bulls and bears are grappling with Bitcoin price of $ 34,000 with an option expiration of $ 445 million

Bulls have a slight advantage, but in general the durability should be low

The $ 230 million worth of ether options expiring on July 2 perfectly reflects a scenario in which both the bulls and the bears expect extreme price changes.

The initial 110,000 Ether contracts appeared to have a balance between call (buy) and put (sell) options. However, only 30% of neutral to bullish calls are placed at USD 2,200 or less, which equates to an open interest of USD 36 million. The remaining 70% of the call options are unlikely to participate on Friday.

On the flip side, protection orders are mostly placed at $ 1,900 and below. However, these contracts are now worthless with less than 14 hours remaining to expire. As a result, the remaining neutral to bearish options will drop to $ 2,100, or $ 26 million in open interest.

All in all, Ether’s expiration date on Friday will be relatively short, but the $ 2,200 mark is critically important. Above that level, the bulls are leading at $ 18 million, creating a $ 28 million imbalance in favor of the call.

Bears are targeting $ 2,100 or less to remove the bulls’ advantage

For the bears, any maturity below $ 2,100 is enough to make up for the situation. It is worth noting, however, that the expiry size was greatly reduced on Friday as both sides made extreme bets but neither were accepted.

At the time of writing, there is no reason to believe that either party will attempt to force the price of Ether in any particular direction before it expires. Traders will likely focus their bets (and efforts) towards the end of July depending on whether there are delays or surprises in the London hard fork.

The views and opinions expressed here are those of author and do not necessarily reflect the views of Cointelegraph. Every investment and trading movement involves risks. You should do your own research when making a decision.