Analysts Observe ETF News Impact on Ethereum Options

Expectations for the continuation of Ethereum’s upward trend have become less optimistic over a one to two-month horizon, according to options market observations by QCP Capital.

QCP: Two major macro events coming up (CPI tonight, FOMC next week). The vol-market continues to express the bullishness in BTC as vols remain very elevated for the calls and particularly in the backend of the curve. However, things are less optimistic for ETH as the 1-2 months…

— Wu Blockchain (@WuBlockchain) March 12, 2024

Experts noted a decrease in the call-to-put ratio in light of the reduced likelihood of approval for an ETF based on the second-largest cryptocurrency, down to 35% by the final deadline for several applications in May.

Regarding Bitcoin, they observed a continued bullish sentiment, especially in the context of contracts with upcoming expirations.

Specialists acknowledged the asset’s acquisition of true digital gold status as the market capitalization of the first cryptocurrency surpassed that of silver.

Analysts did not rule out another pullback as funding rates reach extreme levels. They predicted that any dip would be quickly bought up, as was the case on March 5.

QCP Capital urged monitoring the upcoming March 12 release of US consumer inflation data, as well as the FOMC meeting on March 19-20.

Previously, specialists noted that the deleveraging drop following Bitcoin’s new all-time high subsequently led to aggressive buying of call options expiring in September–December.

Earlier, JPMorgan pointed to the upcoming April halving as a potential trigger for a sharp decline in the price of the leading cryptocurrency.