Ethereum Options Expiry Shows Risks Below $2,900
A $6 billion Ether options expiry on Dec. 26 highlights risks below $2,900, with bearish positioning favored unless ETH breaks $3,100.Summary
A significant $6 billion in Ether (ETH) options is set to expire on December 26, adding potential pressure to the cryptocurrency, which has struggled to stay above $3,400 for 40 days. Although call (buy) options outnumber put (sell) options by 2.2 times, many bullish bets concentrated between $3,500 and $5,000 are likely to expire worthless following a recent 28% crash. Bearish sentiment has increased as traders priced in weaker AI prospects, leading to demand for bearish options strategies. The key price level is $3,100; if ETH trades above $2,950 on Friday, over 60% of the $1.9 billion in put options will expire worthless, but bears maintain an advantage as long as ETH remains below $3,200. Scenarios suggest that if the expiry occurs between $2,700 and $2,900, put instruments will gain a $580 million advantage.
(Source：Cointelegraph)