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Open Interest In Ethereum Options Increases By 315%: Investors Are Currently Stepped Up

Over the past two months, Ethereum has shown increased interest from large participants in the cryptocurrency market. This is evidenced by the surge in open interest in contracts for the purchase or sale of a crypto asset. If previously interest in crypto assets was sluggish, now the situation has changed dramatically.

The rise of open interest in Ethereum

In April and May, open interest in Ethereum options rose 315% to $158 million. This indicator provoked cautious assumptions that investors can use options for both upward and downward games. Today, many cryptanalysts point to the growth of bullish signals from investors. The latest statistics are very revealing: the Ethereum Trust has bought more than 110 million Ethereum since January 2020.

Ethereum’s current technical indicators can partially help investors determine a winning position depending on the price movement of a crypto asset. In particular, some traders voiced the assumption that the next 12 days until then, options to buy (Call) above $260  and options to sell (Put) below $200 will not be relevant.

According to the latest data on Deribit, investors have acquired 50,000 Call contracts and 40,000 Put contracts. Thus, the Ethereum price movement during the current week will determine which contracts will bring profit to their owners.

Long or short positions?

Evaluation of open positions on leading cryptocurrency exchanges is the basis for optimistic forecasts. According to current data, the number of long ETH/USD positions is 2 times higher than short ones. Traders likely expect the game to go up and are convinced that Ethereum will rise in price shortly.

Thus, the current trading graphs ETH/USD and ETH/BTC indicate the prevalence of bullish sentiment among active participants in the cryptocurrency market. As the open positions expire, traders will be able to more accurately calculate the amount of net profit.

What will happen next?

In addition to options, the futures market also has a positive trend for Ethereum. According to Skew, open interest in Ethereum increase by 67%. Cryptanalysts suggest that an increase in the number of futures may indicate that Ethereum has become interested in large institutional investors.

As the expiration of the option purchase contracts approaches, investors will likely try to maintain the price of Ethereum at $240. Thus, the latest data from analytical platforms indicate the prevalence of bullish sentiment among traders and investors.