Ethereum Options Activity Surges in Anticipation of London Hard Fork

London Fork is a highly anticipated upgrade, and it has poured a strong impact on the price movement of Ethereum. With August 6 arrival, the time for ETH options valued at $357 million is near expiration. The neutral-to bearish trend has crashed down, indicating that bears do not stand a chance in the marketplace.

London Fork live launch is just around the corner, and Ethereum’s price has been appreciated by 50% in anticipation of the event. Investors are hoping that high transaction fees on the silver crypto network will mellow down with the completion of this update. Furthermore, the London Fork can also make the token more deflationary with time. Dan Morehead, CEO of Pantera Capital, thinks that Ethereum has a chance to reclaim the crypto market throne and overtake Bitcoin.

Market bears are in a state of shock with the sudden price surge that exceeded many expectations. It started with a neutral call-to-put ratio starting from 1.15 that evened out neutral-to-bullish options 15%. The ratio accounts for 70,956 call options for Ethereum, valued at $191 million. About 85% of the market share is locked in the Deribit derivatives.

When silver cryptocurrency started to trade for $2,700, bears started to look for other avenues. The 61,632 put options that are valued at $166 million for the open market traders also became futile for bears due to the absence of protective put beyond the strike value.

Ether Bulls have a Lot of Expectations

Neutral-to-bullish call options are expected to get a value of $2,800-$3000 partially, provided that all protective puts become worthless above $2,700. At this price, Ethereum will be able to host 39% of the call options that are valued at $191 million with open interest. If Ether goes below $2,600, the amount of the expired options will be valued at $75 million.

The weekly options activity is poised in favor of bulls. Their holdings are boosted and ready for more bets after the next expirations in August. Meanwhile, bears have put the market on pause and waiting for another market top to get back into the game. The analysis provided in this article is only the opinion of the author, and investors should research before making any decisions.

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