The last couple of days have been extremely bullish for the crypto space, especially for the second largest cryptocurrency, Ethereum price. The lead altcoin has gained 6% in the last 24hrs and is now trading at $2,000.
In May, Ethereum had a massive drop along with Bitcoin and other assets. However, things have changed for ETH since July, as the currency has jumped almost 100% over the past 40 days.
The reason behind such a surge is mainly The Merge upgrade scheduled for September 15-16, 2022. Thus, the bullish sentiment could continue till the upgrade, and maybe even after.
ETH options interest is higher than bitcoin
The Glassnode report shows that interest in ETH options has exceeded that of BTC options – a phenomenon that has never been seen to date.
As per the reports, ETH Options Open Interest is positioned at $6.6B whereas BTC Open Interest is at $4.8B. This might be because of traders who are betting big with call options due to the upcoming September merge.
Conversely, reports from the derivatives market indicate that most market participants believe that this bullish momentum will end after the merger. Meanwhile, one of Glassnode’s analysts says this news could turn into a sell-like situation.
September call options are presently increasing, which is affecting the put options, with Deribit data indicating a rebound to $2,200. Nevertheless, after the Merge update, the demand for call options might decline dramatically.
This indicates that market participants are eager for more downward shielding. This is to protect your holdings after a big rally in the short run.
Additionally, Ethereum co-founder, Vitalik Buterin believes that it will be interesting to watch how the Ethereum price will perform after the Merge event.
