If you look at Ether (ETH) options for June 25, you might think that traders have become overly optimistic or extremely bearish. Currently there are big bets on the price under $ 1,000 while others target $ 3,800 or more.

A recent report from Coinshares shows that many crypto funds have seen net inflows after weeks of record inflows. The report finds that Ether vehicles received a total of $ 47 million in inflows, increasing its market dominance to 27%.

DeFi growth supports higher ETH price

Another positive factor is that DeFi protocols maintain a total value of $ 48 billion locked (TVL), despite the fact that the sector has been severely impacted following the recent Ether price crash.

The net worth of the Ethereum network is tied to smart contracts. Source: DeBank

A 57% increase over the past three months will please even the most optimistic investors, but prominent traders are exaggerating any situation that has evolved over the past few weeks. As Ether fell from its all-time high of $ 4,380 on May 12, traders were quick to set up protective put orders at $ 400.

On the other hand, the eagerly anticipated transition to a PoS consensus model could be the root of positive expectations. The EIP-1559 improvement proposed for the next month is another important stepping stone, and some traders have price targets between $ 4,000 and $ 10,000.

Open Interest for Bitcoin Options June 25th. Source: Bybt

There are currently 623,800 ether option contracts, which expire on June 25, with a total volume of $ 1.75 billion in Open Interest (OI). Neutral to bullish call (buy) options now represent 29% more, although this call-to-put ratio uses the same weight for every strike price regardless of its probability.

Bears spent over $ 1 million building their place

Put options are extremely discounted at $ 1,600 and lower at 170,000 Ether contracts, which equates to an open interest of $ 476 million. However, given the approximately three weeks remaining to expire on June 25th, these contracts will each trade below $ 32. The market value of these put options is $ 1.2 million.

On the flip side, the bulls may have been overwhelmed by buying call options at $ 3,800 and above. These 160,000 ether contracts have an OI value of $ 450 million, but considering their current face value is less than $ 80 per contract, their market value is $ 5 million.

As a result, the bulls spent more money building their positions despite the same open interest being placed on both sides.

Annie

According to Cointelegraph

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