Ether Options Defy Street's Bullish Sentiment in Crypto Market

• Ethereum's Ether (ETH) Shows Potential for Market Leadership
• Ethereum Options and Market Bias
• Ether Call-Put Skew
• Reasons for Ether Puts Richness
• ETH's Critical Level

Ethereum's Ether (ETH) Shows Potential for Market Leadership

Ethereum$2,315 -2.42%'s native token, Ether (ETH), has the capacity to take the lead in the market over the upcoming months, according to remarks from industry observers. These individuals have touted ETH to be a central asset within a diverse cryptocurrency portfolio. However, it's worth noting that the current sentiment within the options market doesn't align with this optimistic view.

Ethereum Options and Market Bias

Amberdata reports that options linked to ETH display a leaning towards price weakness over a three-month span. However, there is a minor inclination for strength in the following months. Options are derivatives that provide buyers the opportunity to either gain from or guard against price rises and falls. Call options enable buyers to profit from price surges, while put options offer safeguards against price declines.

Ether Call-Put Skew

Ether's one-week call-put skew, a measure of demand for calls in comparison to puts that expire in seven days, dipped to nearly -8 on a recent Wednesday. This is the lowest it has been in over three months, signifying a favoring of bets on ETH's price drop. This negative stance persisted at the time of reporting, with one-, two- and three-month skews showing a pessimistic forecast.

Reasons for Ether Puts Richness

Industry observers attribute the relative richness of ether puts to ETH's decline below key support and investor interest in selling calls to generate additional yield. As explained by Options Insights' founder, Imran Lakha, The sharp rise in ETH skew echoes the effects of call selling flows and the breach of essential technical support at $2,400, driving prices towards $2,200.

ETH's Critical Level

Lakha further stated, "A critical level for ETH is $2,150; crossing this could stimulate further declines. Recent market activity suggests a cautious short-term outlook for ETH, with growing demand for hedges. At the time of reporting, Ether was trading at $2210, showing a 1% fall for the day, according to the provided data.

The Ether call-put skew reveals interesting insights into market sentiment (Source: Amberdata).

Edited by Jonathan Stoker