{"id":273158,"date":"2021-06-13T00:30:00","date_gmt":"2021-06-12T21:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ethereums-1-5b-options-expiry-on-june-25-will-be-a-make-or-break-moment\/"},"modified":"2021-06-13T00:30:00","modified_gmt":"2021-06-12T21:30:00","slug":"ethereums-1-5b-options-expiry-on-june-25-will-be-a-make-or-break-moment","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ethereums-1-5b-options-expiry-on-june-25-will-be-a-make-or-break-moment\/","title":{"rendered":"# Ethereum&#8217;s $1.5B options expiry on June 25 will be a make-or-break moment"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3dbdf2dddd8\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3dbdf2dddd8\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereums-1-5b-options-expiry-on-june-25-will-be-a-make-or-break-moment\/#Recent_history_shows_a_mix_of_bullish_and_bearish_catalysts\" >Recent history shows a mix of bullish and bearish catalysts\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereums-1-5b-options-expiry-on-june-25-will-be-a-make-or-break-moment\/#For_bulls_2200_is_the_line_in_the_sand\" >For bulls, $2,200 is the line in the sand<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Ethereum&#8217;s $1.5B options expiry on June 25 will be a make-or-break moment <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>On June 25, Ether (ETH) will face its largest options expiry in 2021 as $1.5 billion worth of open interest will be settled. This figure is 30% larger than March&#8217;s 26 expiry, which took place as Ether price plunged 17% in 5 days and bottomed near $1,550.\u00a0<\/p>\n<p>However, Ether rallied 56% after March&#8217;s options expiry, reaching $2,500 within three weeks. These moves were completely uncorrelated to Bitcoin&#8217;s (BTC). Therefore, it is essential to understand if a similar market structure could be underway for June 25 futures and options expiry.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/96e56c8d-cc90-4c8d-83da-d373cf8c86e3.png\"><figcaption style=\"text-align: center;\"><em>Ether price at Bitstamp in March 2021, USD. Source: TradingView<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Recent_history_shows_a_mix_of_bullish_and_bearish_catalysts\"><\/span>Recent history shows a mix of bullish and bearish catalysts\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>On March 11, Ether miners organized a &#8220;show of force&#8221; against EIP-1559, which would significantly reduce their revenues.<\/p>\n<p>The situation worsened on March 22, as CoinMetrics launched an &#8220;Ethereum Gas Report,&#8221; stating that the highly anticipated EIP-1559 network upgrade would unlikely solve the high gas problem. <\/p>\n<p>Things started to change on March 29, as Visa announced plans to use the Ethereum blockchain to settle a transaction made in fiat, and on April 15, the Berlin upgrade was successfully implemented. According to Cointelegraph, after Berlin launched, &#8220;the average gas fee began to decline to more manageable levels.&#8221;<\/p>\n<p>Before jumping to conclusions and speculating whether these phenomena of the Ether price bottoming near the upcoming $1.5 billion options expiry are bullish or bearish, it&#8217;s best first to analyze how large traders are positioned.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/829aef1f-9d90-46ad-b351-c5d1a44e3963.png\"><figcaption style=\"text-align: center;\"><em>Ether options open interest by expiry date. Source: Bybt<\/em><\/figcaption><\/figure>\n<p>Take notice of how June&#8217;s expiry holds over 638,000 ETH options contracts, totaling 45% of the aggregate $3.4 billion open interest.<\/p>\n<p>Unlike futures contracts, options are divided into two segments. Call (buy) options allow the buyer to acquire Ether at a fixed price on the expiry date. <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">General<\/a>ly speaking, these are used on neutral arbitrage trades or bullish strategies.<\/p>\n<p>Meanwhile, the put (sell) options are commonly used to hedge or protect from negative price swings.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/d2b1b03a-7521-4757-b6af-91749f33ec3f.png\"><figcaption style=\"text-align: center;\"><em>June 25 Ether options open interest by strike. Source: Bybt<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"For_bulls_2200_is_the_line_in_the_sand\"><\/span>For bulls, $2,200 is the line in the sand<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As displayed above, there&#8217;s a disproportionate amount of call options at $2,200 and higher strikes. This means that if Ether&#8217;s price on June 25 h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ens to be below this level, 73% of the neutral-to-bullish options will be worthless. The 95,000 call options still in play would represent a $228 million open interest.<\/p>\n<p>On the other hand, most protective put options have been opened at $2,100 or lower. Consequently, 74% of those neutral-to-bearish options will become worthless if the price stays above this level. Therefore, the remaining 73,700 put options would represent a $177 million open interest.<\/p>\n<p>It seems premature to call who might be the winner of this race, but considering Ether&#8217;s current $2,400 price, it looks like both sides are reasonably comfortable. <\/p>\n<p>However, traders should keep a close eye on this event, especially considering the price impact that surrounded the March expiry.<\/p>\n<p><em>The views and opinions expressed here are solely those of the <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/noshitcoins\"><em>author<\/em><\/a><em> and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.<\/em><\/p>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/ethereum-s-1-5b-options-expiry-on-june-25-will-be-a-make-or-break-moment\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Ethereum&#8217;s $1.5B options expiry on June 25 will be a make-or-break moment &#8221; On June 25, Ether (ETH) will face its largest options expiry in 2021 as $1.5 billion worth of open interest will be settled. This figure is 30% larger than March&#8217;s 26 expiry, which took place as Ether price plunged 17% in&#8230;<\/p>\n","protected":false},"author":1,"featured_media":273159,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDYvOWRkZDg4M2YtODcyZC00YjU4LTk4ODYtZGM0NzM1MjI0ZjcyLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74863,75012,82402,74891,81210,74939,73785],"class_list":["post-273158","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-cryptocurrencies","tag-derivatives","tag-ether-price","tag-ethereum","tag-ethereum-options","tag-market-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/273158","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=273158"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/273158\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/273159"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=273158"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=273158"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=273158"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}