Bullish Market Sentiment Dominates Ether Options for End of April

Industry experts suggest a prevailing bullish sentiment in the Ether options market for the end of April expiry, with a bias towards upward movement.

Data from Deribit shows a significant tilt towards bullish positions, with approximately $3.3 billion of notional ether options expiring at the end of April, two-thirds of which are bullish bets on price movement.

Wintermute OTC Trader, Jake Ostrovskis, notes call strikes concentrated between $3,700 to $4,000, indicating an inclination towards upside movement and overall bullish sentiment.

The current open interest skew favors call trading at a premium to puts, with an increase in implied volatility suggesting a stronger directional bias and reduced dependence on writing options to finance premiums.

Bullish Put-Call Ratio

The ether put-call ratio for the end of April expiry stands at 0.45, indicating a slightly more bullish sentiment compared to bitcoin options. Traders see relative value in ether, considering its underperformance compared to Bitcoin in 2024.

A put-call ratio below one signifies bullish sentiment, further highlighted by Monday’s ether put-call ratio falling to 0.4, reaching a low not seen since late February.

Despite the bullish outlook, concerns remain about regulatory changes and skepticism around ETF approval by June 30th, 2024, with market sentiment indicating a low probability. Positive developments like the SEC soliciting comments on spot ether ETFs have not been fully embraced.

Ether Price Movement

Ether has seen a 6.8% increase in the past 24 hours, trading at $3,645 as of 11:14 a.m. ET, reinforcing the bullish sentiment in the options market for the end of April expiry.

Featured Image: Freepik

Please See Disclaimer