ETH Options Traders Project Rally, Despite Expert Pessimism

IconCryptoNewsTerminal Staff23 Jul, 2024

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ETH Options Traders Project Rally, Despite Expert Pessimism

Options traders are betting on a rally in the price of Ethereum (ETH), according to data from Amberdata. Both short-term and long-term call options are trading at a premium to puts, indicating that traders expect ETH to rise in value over the coming months. However, market experts are collectively giving a negative outlook for the price of ETH, despite the options market data. Valentin Foumier, an analyst at crypto asset research firm BRN, believes that ETH could drop to the $2,800–$3,100 range before rallying to $4,000 by September. "We believe that the spot ETH ETF story is already priced in," he said. Other experts have also expressed concerns about the potential impact of an Ethereum ETF on the price of ETH. Crypto market maker Wintermute estimates that the amount of money that will flow into an Ethereum ETF over the next 12 months could be 62% lower than the $16 billion that the first bitcoin ETF attracted over six months. Despite the negative outlook from experts, options traders are clearly betting on a rally in the price of ETH. It remains to be seen whether their optimism will be rewarded.

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