Ether (ETH) entered a somewhat bullish channel earlier this month and is currently moving towards the 3,800 level. Despite the recent turmoil, Ether Bulls will make a profit of $ 53 million by the end of this Friday’s weekly option.
Investors also seem uninterested in the recent lower performance of Bitcoin (BTC) vs. Ether and to date, Altcoin’s profit stands at 265%. If Ether could stay above $ 3,600 on Friday, 99% of the 180 180 million (sales) option would be worthless.
Ethereum Smart Contract competitors continue to put pressure on leading networks, and at the time of writing, Ethereum’s average gas fee is above 20. Polkadot (DOT) is scheduled to launch its sidechain auction on November 11, and it is going through new token launches, decentralized finance (DeFi) applications, Internet of Things (IoT) solutions, all through reliable cross-network bridges.
This week, Benson Smart Chain unveiled plans to launch a 1 billion fund to accelerate adoption across the entire crypto industry. Investors generally interpret potential incubation events supported by blockchain projects as bullish for their domestic assets, and BNB prices have risen at least 30% since the announcement.
The bear was not expecting a price above $ 3,300
Based on the recent mild negative news flow, it is possible to understand why the Bears placed 88% of their bets at $ 3,300 or less. If the bulls had been a little less greedy, they could have finished the 365 million period on Friday.
Perfectly balanced between call (buy) and put (sell) options in the long (short) ratio for the October 15 expiration date. Still, more detail is needed depending on the expiration price of this Birdsay View.
At first glance, both parties hold ই 1,180 million worth of ether options, as indicated by the 1.03 call-to-pit ratio.
However, this metric is deceptive because the recent ether assembly will probably remove most of their bearish bets. For example, if the price of ether is above 3, 3,500 at 8:00 a.m. UTC on Friday, only the 6. 6.6 million (sales) option will be available.
Bulls are comfortable at $ 3,600
Any expired value above $ 3,500 is a bear trap, although the 32 32 million advantage is not enough for the loss. To put things in perspective, Ether’s monthly option expires at 800 80,000 million in open interest.
Considering the current price level, four possible scenarios are given below, as the imbalance on both sides represents the potential theoretical profit of the expiration date.
The data shows how many contracts will be available for bull (call) and beer (put) instruments on October 15th.
- Between $ 3,300 and 3,500: 7,450 calls vs. 3,550 pts. Net results in favor of bulls by 13 million;
- Between $ 3,500 and 3,600: 11,150 calls vs. 1,900 put. Net results in favor of bulls by $ 32 million;
- Between $ 3,600 and 3,800: 15,400 calls vs. 600 put. Bull profits rose to $ 74 million.
- Above 3,800: 27,450 calls vs. 0 put. The bulls dominated, earning 4 104 million.
This crude assumption uses call (buy) options in bullish strategy and considers options (sell) in neutral-to-bearish trades. However, a trader could sell a put option, effectively gaining a positive exposure to ether above a certain price. But, unfortunately, there is no easy way to estimate this effect.
Beer needs a sub-$ 3,500 to balance the scale
Ethereum’s turnover above 8 3,800 increased the Bulls’ profit to $ 104 million, an increase of ০ 1 million from the current estimated profit of $ 8 million. The bear, on the other hand, has a profit of 61 615 million from the point of view, pushing the price below $ 500,500 as estimated above.
Shortly before the October 15-day deadline, the Bears will have trouble suppressing the current bull run. Regardless of the competition and high gas fees faced by the Etherium network, the demand for decentralized funds (DFIs) and NFTs from investors seems to be enough to keep Ether on an uptrend.
The opinions and views expressed here are only their opinions Author And don’t necessarily reflect Cointelegraph’s opinion. Every investment and trading move involves risk. You should do your own research when making decisions.
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