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


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



Leave a Reply

Your email address will not be published. Required fields are marked *


Binance Announces Mew Memecoin Listing On Binance Futures

Editor Choice | Altcoin

Binance Announces MEW Memecoin Listing on Binance Futures

Binance Exchange Announces Listing of Cat in a Dogs World (MEW) - A Memecoin Developed on Solana, on Binance Futures.

Azcnews Eth Drops Sharply As Whales Increase Accumulation

News | Altcoin | Editor Choice

ETH Drops Sharply as Whales Increase Accumulation

Ethereum whales have accumulated substantial amounts of ETH over the past few days. Despite these developments, the price has remained stagnant.

How To Receive Notcoin (not) On Bingx

Airdrops | Editor Choice

How to Receive Notcoin (NOT) on BingX

The cryptocurrency exchange BingX is excited to announce the listing of Notcoin (NOT) on its platform. In celebration of this listing, BingX is launching a Notcoin rewards program with a massive total prize pool of 2,500,500 NOT.

Azcnews Bitcoin Drops To $65,000 Despite Positive Indicators

News | Bitcoin | Editor Choice

Bitcoin Drops to $65,000 Despite Positive Indicators

Bitcoin's price has dropped nearly 5% over the past seven days. Most metrics and market indicators suggest that this downward trend is likely to continue.

Guide To Participate In The Beacon Airdrop

Editor Choice | Airdrops

Guide to Participate in The Beacon Airdrop

The Beacon is a fantasy-themed roguelite role-playing game developed on Arbitrum. The Beacon has confirmed that it will conduct an airdrop for the community through various missions. Join the AZCNews team in participating in The Beacon Airdrop today!