Ether traders are showing a cautiously optimistic outlook as the options market trends bullish, with substantial open interest in call contracts. According to a Nansen research analyst, there is still a layer of caution among large investors due to significant downside volatility risks below the $2,600 price point for Ether. The current state of the market suggests a focus on the upcoming options expirations in February, which could impact Ether’s price movement significantly.
Data indicates that over 70% of options open interest leans towards call contracts, underlining traders’ belief in Ether’s potential rise. This optimistic positioning is further supported by activity concentrated around the $3,000–$4,000 price strikes, and a low Put/Call Ratio boosting bullish sentiment. Despite Ether’s recent flat trading pattern, it has experienced a 21% decrease on the monthly chart.
In the broader context, some key investors are hedging their bets with put options, representing 22% of block trades. These investors maintain caution about potential downside risks, despite the implied volatility skewing towards bullish sentiment.
Ether’s ability to maintain a price above $2,600 is critical. A drop below this level could prompt over $500 million in leveraged short liquidations across exchanges. However, external influences, such as geopolitical trade tensions, continue to pose additional risks, potentially affecting both Bitcoin and Ether prices. Trade concerns were heightened due to newly announced import tariffs by the US and China, as market watchers await further developments from their ongoing trade negotiations.
