Business, Ethereum

$1.25 Bln Ethereum Options Expiry On 28th October – Effects On Market Price.

In 2021, Ethereum (ETH) increased by 950 percent, and the altcoin has no intention of ceasing to exist. The widely anticipated betting expiration of the October 1.25 billion election exemplifies this. This issue, however, is not exclusive to Ether bulls.

The right to receive Ether at a predetermined price in the future is not cheap. A $ 5,000 monthly expiration call option for October traded at ETH 0.082, or $ 320, on September 4. Unfortunately, these solutions are no longer viable for bulls.

The cost of gas in Ethereum sales is still over $ 25, allowing our competitors’ blockchains to continue to operate with their shared funds (Defi) and unaffiliated token marketplaces (NFT). Despite these large payments, the dominant smart contract network still controls 80% of the entire value of the key price (TVL) and the volume traded volumes (DEX).

For a few weeks, the bullish trend that began on September 21 has been driving the price of Ether towards the $ 4,380 all-time high.

Ethereum bulls will also be relieved to see that the Altair ETH 2.0 update was successful, with 99 percent of nodes upgraded. Support for lightweight nodes and greater penalties for offline authentication are among the significant changes in this first version since Beacon Chain went live in December 2020.

eth chart

Ethereum October Month Chart: Source- Tradingview.com

It is now clear why bulls have put 55 percent of their bets at $ 4,500 or higher, based on the expectations around the Bitcoin (BTC) trading platform. However, as the Oct. 29 expiration date approaches, these calls (buy) options have suddenly lost their value.

Any price above $ 4,000 represents a profit of $ 205 million or more for bulls, thus the October expiration will be a strength test for bears. Only $ 12 million of neutral to bearish placement options will apply if Ether stays over $ 4,100 on Friday at 8:00 a.m UTC expiration.

Here are four scenarios in which the expiration date is October 29. The gains of a theory are inequalities that benefit both parties. In other words, the cost of the call (buy) and sell (sale) start-up contracts changes based on the expiration date:

35,100 calls vs. 9,800 puts between $ 3,900 and $ 4,000. As a result, $ 100 million is available for calling bull instruments

54,900 calls vs. 3,600 puts between $ 4,000 and $ 4,200. As a result, $ 205 million is available for bull instruments.

Over $4,200: 66,300 calls vs. 600 puts, as a result, $ 275 million is available for calling bull instruments.

In each scenario, the bulls have complete control over the Oct. 29 expiration date, and there is compelling evidence to sustain the price over $ 4,200. On the other side, bears need a 7 percent negative movement from $ 4,270 to $ 4,000 to prevent losses of 205 million or more.

Traders should bear in mind, however, that pressing a price during a bull run requires a lot of effort and usually does not work.

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