ETH Price Hits $2.8K But Options Traders are Bearish
Ether (ETH) price increased by 10% from Monday to Tuesday, reaching a 15-week high but struggling to surpass the $2,800 resistance level. Open interest in ETH options rose from $6.3 billion to $8.3 billion, indicating stronger institutional involvement, with Deribit holding a 72% market share. Popular strategies include short risk reversals and bear diagonal spreads, reflecting bearish sentiment while managing costs. Optimism surrounds the June 27 options expiry, with 63% of open interest in call options. However, 92% of put options are set below $2,700, which would expire worthless if ETH remains above that level. Concerns about ETH's competitive edge arise as Bitcoin gains traction and institutional interest shifts, particularly with Trump Media's $2.5 billion issuance for a Bitcoin treasury. Despite increased demand for downside protection, traders are not necessarily predicting a price drop, as neutral-to-bullish strategies dominate.
