The crypto space is experiencing pretty dreadful and uncertain days since the beginning of the year 2022. However, the trend quickly fell into a deep bearish trend since the beginning of May’s trade which intensified a couple of days before.
Almost all the crypto assets including Bitcoin, Ethereum, etc drop to 18-month low levels, nullifying the gains incurred during the 2021 bull run. However, ETH prices still sustain strongly above $1200, displaying a possibility of reversing its trend towards the north.
Huge ETH Options are Set to Expire on 24th June, Will ETH Price Make it to $1700 or Drop Below $900?
Market participants need not wait for long for a huge trend reversal as it is fast approaching 10 days from now. Yes! You read it right, ETH price is all set to possess extreme volatility as massive option expiry is on the horizon.
A couple of options are lined up to expire in the upcoming days, but the biggest one, the monthly expiry, may induce huge volatility in the prices. As per the data from Skew, nearly 948.2K ETH is about to expire, which may be a bullish scenario for the asset.
The above chart indicates that the buy orders or calls are more than the sell orders or puts. As the traders always place bets considering the market conditions, the ETH price may largely get back on track in the next 10 days. However, the expiry still is pretty distinct and the chances of the traders reversing their bet cannot be set aside. In such cases, prices may experience a significant slump at the said date.
Therefore, the upcoming 10 days are extremely crucial for the ETH prices as a strong consolidation above $1200 may build confidence in the traders who may place a ‘Call’ bet. The more buy orders, the more the chances of the Ethereum price stabilizing emerge. Else if the prices tank down below $1100 or $1000, then the Put orders may outpower the Call orders, increasing the upward pressure on the second-largest asset.
Collectively, Ethereum has been a stable asset with fewer price variations. And hence if the asset continues to accumulate strength above $1200, a greater chance of rebounding back above $1700 surfaces.