Ether (ETH) recovered from a low of $ 1,550 on March 24, down 17% from a weekly high of $ 1,870. While the expiration of $ 1.15 billion in options in the early hours of March 26 may have put pressure on the price of ether, the continued increase in the gas fee for Ethereum transactions probably played a role.

To better assess these forces, one should analyze the exposure to top traders using data provided by the major cryptocurrency exchanges. If the expiration date of the option is pending, long-to-short data from whale and arbitration agencies will show purchase activity after the options expire at 8:00 UTC.

Coinbase Ethereum costs in USD. Source: TradingView
Although the Ethereum price was relatively stable at $ 1,630 at expiration, there should be evidence that regular traders have returned to previous price pressures. If not, there is no reason to believe that the last sale was related to the expiration of the options.

Contrary to the theory of lower pricing options, the CoinMetrics report concludes that the upcoming EIP-1559 network upgrade is unlikely to solve the problem of rising gasoline prices.

The report says that only measurement solutions will really solve the problem. Therefore, large traders will have more important problems to worry about and push on Ether regardless of the expiration date.

Entrepreneurs have not changed their position
Large cryptocurrency exchanges offer long or short net positions. This indicator is calculated by analyzing the consolidated client position on the spot, pending and futures contracts. Thus, it gives a clearer idea of ​​whether professional traders tend to be bullish or bearish.

It is important to note that there are systematic discrepancies between different exchanges from time to time, so you should look for changes instead of absolute numbers.

The best traders on the stock exchange take long or short positions on ether. Source: Bybt
The chart above shows that top traders have cut their positions in the last 48 hours, and the move has continued beyond the expiration of the options (orange line). Whaling agencies have increased their positions as the price of ether fell 10% on March 24 and have since made a profit.

It is worth noting that the 1.56 ratio in favor of long positions on OKEx was the highest in March, indicating that leading traders were confident that the support level of $ 1,550 would remain.

Given that this move took place 36 hours before the options expired, it weakens the hypothesis that the whales have lowered the price of ether in order to make a profit on it in one way or another.

A similar trend was seen on Huobi, with top retailers’ net buying / selling ratio peaking at 0.96 on 25 March. Although the index supports short positions slightly, there have been no such levels since March 7. Due to the expiration of the options on March 26, there was no pressure from the sellers.

Thus, any sustained recovery of the Ether price, let alone a new high, must come with robust scaling solutions and ETH2 in place. At the moment, there is no reason to believe that the option markets have gone away from price.

Source: CoinTelegraph