The structure of the Ether options market suggests traders are anticipating medium-term growth, as February’s options expiry events could play a decisive role in the price trajectory of the world’s second-largest cryptocurrency.
More than 70% of the options open interest is in call contracts as of 10:35 am UTC on Feb. 16, with increasingly more traders betting on Ether’s (ETH) rise, CoinGlass data shows.
The bullish positioning suggests that investors are cautiously optimistic about ETH appreciation in the medium term, according to Nicolai Sondergaard, research analyst at Nansen.
“The ETH options market is leaning bullish, but there’s a touch of caution,” the analyst told Cointelegraph, adding:
“Most of the action is in calls, especially around $3,000–$4,000 strikes, and the low Put/Call Ratio backs up the optimism. There’s a lot of focus on February and March expirations, so traders seem confident about medium-term growth.”
ETH has traded nearly flat over the past week but is down over 21% on the monthly chart, Cointelegraph Markets Pro data shows.
Ether has yet to stage a significant recovery in the current cycle, with the price remaining around 44% below its all-time high of above $4,890 recorded three years ago in November 2021.
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Ether faces $500 million in liquidations below $2,600
Despite the optimistic outlook, large investors remain cautious in their options positioning, reflecting that there is still downside risk for Ether, Sondergaard said.
“Some big players are hedging with puts (22% of block trades), which shows they’re keeping an eye on downside risks. Implied volatility skews toward higher strikes, pointing to bullish sentiment, but stable historical volatility keeps things grounded,” he added.
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ETH needs to hold above the $2,600 support to avoid more downside liquidity.
A potential correction below $2,600 would trigger over $500 million worth of leveraged short liquidations across all exchanges, CoinGlass data shows.
However, Bitcoin (BTC) and Ether prices may also be pressured by external factors, such as geopolitical trade tensions.
Global trade war concerns hit market participants following new import tariffs announced by the US and China. Investors are still waiting for US President Donald Trump’s meeting with Chinese President Xi Jinping, which is aimed at resolving trade tensions.
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