Ethereum Dips as Demand for Put Options Surges Significantly

Ethereum traders shifted to a bearish stance amidst rising demand for put options. Despite limited price volatility, retail investors persisted in accumulating ETH.

Azcnews (1)

Interest in Ethereum [ETH] has escalated as the bullish mood in the cryptocurrency market soared, especially after the approval of the Bitcoin ETF. However, as it progresses, there are signs that Ethereum’s bullish trend is undergoing a change.

Interest in put options increased

According to data from QCP, ETH’s risk shift to the downside shows growing demand for put options, which are seen as a hedge against potential risks from fixed buying position. Additionally, altcoin investors can also buy ETH put options to mitigate the downward price fluctuations of altcoins. These reactions are raising concerns about the possibility of a market correction, especially given the high level of leverage in the market.

However, it is predicted that the market will react strongly to any downward price fluctuations. The shift to a bearish mood could be driven by upcoming events that could create volatility in ETH price, including the Dencun upgrade, which could impact prices and sentiment of the market.

Concerns about the upgrades are to be expected, as not all upgrades have a positive impact on the price of ETH. For example, the Merge update to move Ethereum from a Proof of Work to Proof of Stake network caused a major adjustment.

These concerns, coupled with uncertainty about the approval of Ethereum ETF applications, could create FUD in the market.

How is ETH doing?

ETHUSD 2024 03 13 15 58 34

Source: Trading View

Regarding the current situation of ETH, at the time of writing, ETH is trading at 4046 USD and has increased steadily to this price. Despite some minor adjustments, the overall trend is still up.

Related: Successful Deployment of Dencun Upgrade

However, ETH’s OBV (On Balance Volume) has decreased significantly over the past few days. This shows that selling pressure is greater than buying pressure, potentially indicating a weakening trend or upcoming price decline.

Retail continues to accumulate

Ethereum

Source: Santiment

ETH network growth is also increasing, showing interest in ETH from new addresses. However, when looking at the behavior of addresses in general, we see that it is mainly retail investors who are showing more interest in ETH. On the other hand, large investors are not showing the same interest and are not accumulating ETH to the same extent.

Ethereum ETH 16.17.08 13 Mar 2024

Source: Santiment

Love

0.0/5

Love

Latest

Whales Dump Xrp As $50 Million Floods Out Daily

News | Altcoin | Editor Choice

Whales Dump XRP as $50 Million Floods Out Daily

The relentless sell-off of XRP by crypto whales is shaking the market, with $50 million worth of tokens dumped daily, dragging prices lower and sparking fears of a deeper bearish cycle ahead.

Luxembourg Becomes First Eurozone Nation To Invest In Bitcoin

News | Bitcoin | Editor Choice

Luxembourg Becomes First Eurozone Nation to Invest in Bitcoin

Luxembourg’s sovereign wealth fund has allocated 1% of its portfolio—around USD 8 million—into a Bitcoin ETF, making it the first Eurozone country to officially invest in the digital asset.

Bitcoin Whale Addresses Holding Over 100 Btc Hit Record High

News | Bitcoin | Editor Choice

Bitcoin Whale Addresses Holding Over 100 BTC Hit Record High, Bull Run Through 2026

As Bitcoin whales ramp up accumulation and prices soar to new highs, Citigroup forecasts that the bull market could continue through 2026 — setting the stage for another explosive rally in the world’s largest cryptocurrency.

70% Of Bnb Chain Memecoin Investors Are In Profit

News | Editor Choice | Memecoin

70% of BNB Chain Memecoin Investors Are in Profit – CZ’s “Meme Season” Is in Full Swing

The memecoin wave on the BNB Chain is exploding, with over 70% of investors reporting profits as capital floods in — marking the start of the most vibrant “meme season” ever predicted by CZ.

Paypay Acquires 40% Stake In Binance Japan

News | Editor Choice | Policy & Regulations

PayPay Acquires 40% Stake in Binance Japan

The acquisition of a 40% stake in Binance Japan marks a historic milestone for PayPay, paving the way for the convergence of traditional payments and digital assets, and shaping the future of Japan’s digital finance landscape.

Screenshot 2025 09 10 100533