Ether Put Demand Signals Weakness After $4K Price Breakout
Summary
Ether (ETH) options traders anticipate short-term price weakness after the cryptocurrency surged past $4,000. The one-month call-put skew has turned negative, indicating a preference for put options. Investor interest in near-term ether puts is linked to reduced probability of a spot ether exchange-traded fund (ETF) approval by the U.S. Securities and Exchange Commission (SEC) in May. The 75% year-to-date gain in ether has been driven by hopes of an SEC-approved spot ETF. Analysts have lowered the probability of a spot ether ETF approval in May, with estimates dropping to 30% from 70%. The SEC's decision on BlackRock and Fidelity's applications for spot ETH ETFs has been delayed, but there is optimism for approval on May 23.
