Ethereum traders are navigating a mixed market as options data shows a strong bullish bias but with notable hedging against potential downside risks.
Ethereum traders are navigating a mixed market as options data shows a strong bullish bias but with notable hedging against potential downside risks. According to CoinGlass, more than 70% of open interest in Ether options is in call contracts, with many targeting the $3,000-$4,000 range. This suggests traders are anticipating a price increase in the coming months. However, institutional players are also preparing for possible losses, with nearly 22% of block trades involving put contracts. Implied volatility is higher at the upper price levels, reflecting optimism, but historical volatility remains stable, indicating some caution.
ETH has struggled to gain momentum, trading nearly flat over the past week and falling more than 21% this month. It remains about 44% below its all-time high of $4,890 from November 2021. A key support level at $2,600 is in focus—if ETH drops below this point, it could trigger over $500 million in leveraged long liquidations across exchanges. Traders are watching this level closely, as a further decline could lead to a cascade of liquidations, worsening the sell-off.
Macroeconomic and geopolitical factors are also influencing broader market sentiment. Trade tensions between the U.S. and China continue to create uncertainty, with upcoming discussions between U.S. President Donald Trump and Chinese President Xi Jinping drawing attention. Both countries have introduced new import tariffs, which have unsettled global markets. At the same time, regulatory concerns remain, especially after the SEC’s lawsuit against Ripple (XRP) in December 2020, which reminded investors how legal actions can impact digital assets.
Despite these risks, the ETH options market remains bullish. The Put/Call Ratio is low, with traders positioning themselves in call contracts, expecting a price rally. However, institutional investors hedging their bets and the risk of a liquidation event show that the market remains fragile. Traders are keeping a close eye on support levels and external factors that could influence ETH’s price trajectory.
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