Ether (ETH) recovered from a low of $ 1550 on March 24, down 17% from a weekly high of $ 1,870. While the $ 1.15 billion options expiring early in the morning of March 26 may have driven the price of Ethereum, it is likely that the continued increase in gas fees for Ethereum transactions has played a role.

To better assess these forces, one should analyze the exposure of the top traders using data provided by the largest cryptocurrency exchanges. If the option remains valid, data from whales and arbitrage will instantly and quickly reflect buying activity after the options expire at 8:00 UTC.

Coinbase Ethereum Price, USD Source: TradingView
While Ethereum’s price has remained relatively stable at $ 1,630 on the expiration date, there must be some evidence that major traders are rejecting past price pressures. If not, then there should be no reason to believe that the recent sale was related to the expiration of the option.

To counter the theory of falling prices brought on by alternative technologies, the CoinMetrics report concluded that the much-anticipated EIP-1559 network upgrade is unlikely to solve the problem of rising fuel costs.

The report states that only large-scale solutions can truly solve the problem. Consequently, the leading retailers will have more important issues to worry about and the price of Ether will increase regardless of the expiration date.

Traders did not change their position
Major cryptocurrency exchanges provide online positioning from the short term to the short term. This indicator is calculated by analyzing the consolidated client position for spot, permanent and future contracts. Thus, it gives a clearer picture of whether professional traders are leaning in an upward or downward direction.

It is important to note that there are sporadic discrepancies between the methods between the different exchanges, so you should track changes, not absolute numbers.

The largest traders on the exchange have very small Ether. Source: Bybt
The chart above shows that the major traders have cut their positions in the past 48 hours and that the movement is still intact after the options expired (orange line). These whales and arbitrage charts increased their positions when the price of Ether fell 10% on March 24, and have been making profits ever since.

Notably, the 1.56 ratio, which is fueling pressure on OKEx, was the highest in March, indicating that prominent traders were confident that the $ 1550 support would continue.

Given that this move occurred 36 hours before the options expired, it weakens the whales’ mission to bring down the price of Ether in order to somehow benefit from it.

A similar trend occurred in Huobi, with the maximum number of long and short positions by major traders reaching 0.96 on March 25th. Although there are some favorable short positions, the index has not seen such levels since March 7th. Indicates less selling pressure due to the end of March 26th.

As such, any sustainable rise in ether prices, let alone new hikes at all, must occur when Eth2 and sustainable scaling solutions are implemented. There is currently no reason to believe that the options markets have masked the price.

Source: CoinTelegraph

LEAVE A REPLY