{"id":375637,"date":"2021-12-03T01:20:00","date_gmt":"2021-12-02T22:20:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/regulatory-fears-put-a-damper-on-ethereum-traders-5000-target\/"},"modified":"2021-12-03T01:20:00","modified_gmt":"2021-12-02T22:20:00","slug":"regulatory-fears-put-a-damper-on-ethereum-traders-5000-target","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/regulatory-fears-put-a-damper-on-ethereum-traders-5000-target\/","title":{"rendered":"# Regulatory fears put a damper on Ethereum traders\u2019 $5,000 target"},"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-6a358466c27e9\" 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-6a358466c27e9\" 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\/regulatory-fears-put-a-damper-on-ethereum-traders-5000-target\/#Bulls_are_unfazed_after_todays_4_price_drop\" >Bulls are unfazed after today\u2019s 4% price drop<\/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\/regulatory-fears-put-a-damper-on-ethereum-traders-5000-target\/#Bulls_need_4700_to_secure_a_decent-sized_profit\" >Bulls need $4,700 to secure a decent-sized profit<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Regulatory fears put a damper on Ethereum traders\u2019 $5,000 target <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>This week Ether (ETH) price came within 2% of its all-time high, and on Dec. 2 the altcoin reached its highest price in Bitcoin (BTC) terms since May 2018. Ether hitting 0.0835 in its BTC pair represents a 229% gain for 2021, but Ether bulls might come out empty-handed from this Friday\u2019s $680 million options expiry.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/f0dbc415-2db9-40a3-9b10-58e910637707.png\"><figcaption style=\"text-align: center;\"><em>ETH\/BTC price at FTX. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Notice the ascending channel formation initiated in mid-October, which likely reflects the network\u2019s $177 billion total value <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/defillama.com\/chain\/Ethereum\">locked in smart contracts (TVL)<\/a>. Moreover, Ether&#8217;s <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/etherscan.io\/address\/0x00000000219ab540356cbb839cbe05303d7705fa#analytics\">ETH 2.0 beacon chain<\/a> balance reached an 8.45 million high, which is a 4.5% increase in November.<\/p>\n<p>Last week, four Ethereum blockchain-based metaverse projects generated more than $100 million worth of virtual land in nonfungible token (NFT) sales last week, according to reporting by Cointelegraph.<\/p>\n<p>However, Ether investors might be concerned about the United States Lower House meeting scheduled for Dec. 8 where the committee will focus on &#8220;Digital Assets and the Future of Finance.\u201d Stablecoin issuers and exchange CEOs have been invited, so there\u2019s some potential heat coming from the threat of new regulation.<\/p>\n<p>Regardless of the rationale behind ETH\u2019s current 6% ETH price drop, bulls missed the opportunity to secure a $80 profit in Dec. 3 weekly options expiry.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/f59f3663-2ddb-406a-933e-e8d9e1d9314b.png\"><figcaption style=\"text-align: center;\"><em>Ether options aggregate open interest for Dec. 3. Source: Coinglass.com<\/em><\/figcaption><\/figure>\n<p>A broader view using the call-to-put ratio shows a 19% advantage to bears as the $375 million put (sell) instruments have a larger open interest versus the $305 million call (buy) options. The 0.81 indicator is deceptive because the 49% bull run since September caused most of the bearish bets to become worthless.<\/p>\n<p>For example, if Ether\u2019s price remains above $4,400 at 8:00 am UTC on Dec. 3, only $68 million worth of those put (sell) options will be available. Therefore, there is no value in the right to sell Ether at $4,400 if it is trading above that price.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bulls_are_unfazed_after_todays_4_price_drop\"><\/span>Bulls are unfazed after today\u2019s 4% price drop<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Below are the three most likely scenarios based on the current price action. The number of option contracts available on Dec.3 for bulls (call) and bear (put) instruments vary depending on the expiry ETH price. The imbalance favoring each side constitutes the theoretical profit:<\/p>\n<ul>\n<li><strong>Between $4,300 and $4,500:<\/strong> 11,300 calls vs. 15,400 puts. The net result is balanced.<\/li>\n<li><strong>Between $4,500 and $4,700:<\/strong> 21,700 calls vs. 7,300 puts. The net result is $65 million favoring the call (bull) instruments.<\/li>\n<li><strong>Above $4,700:<\/strong> 26,000 calls vs. 5,000 puts. The net result is $100 million favoring the call (bull) instruments.<\/li>\n<\/ul>\n<p>This crude estimate considers call options being used in bullish bets and put options exclusively in neutral-to-bearish trades. Even so, this oversimplification disregards more complex investment strategies.<\/p>\n<p>For instance, a trader could have sold a call option, effectively gaining a negative exposure to Ether above a specific price. But, unfortunately, there\u2019s no easy way to estimate this effect.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bulls_need_4700_to_secure_a_decent-sized_profit\"><\/span>Bulls need $4,700 to secure a decent-sized profit<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Ether bulls need a 4.7% move from $4,500 to $4,700 to score a $100 million profit. On the other hand, bears simply need to keep Ether price below $4,500 to avoid any losses.<\/p>\n<p>As the ETH\/BTC chart indicates, there\u2019s some decoupling gaining traction, which might favor Ether holders. Despite the incentives for pushing Ether price above $4,700 ahead of Friday\u2019s expiry, this favourable outcome for bulls seems somewhat distant.<\/p>\n<p>Could bears save this week\u2019s options expiry and avoid a $100 million loss? Possibly.<\/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<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template>\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\/regulatory-fears-put-a-damper-on-ethereum-traders-5-000-target\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Regulatory fears put a damper on Ethereum traders\u2019 $5,000 target &#8221; This week Ether (ETH) price came within 2% of its all-time high, and on Dec. 2 the altcoin reached its highest price in Bitcoin (BTC) terms since May 2018. Ether hitting 0.0835 in its BTC pair represents a 229% gain for 2021, but&#8230;<\/p>\n","protected":false},"author":1,"featured_media":375638,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMTIvNzlkNjE3OGItODdiOC00YWZhLWFkOTYtYzdhN2FlODJlMjkwLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74863,74860,75012,74891,81210,74939,75493,73785],"class_list":["post-375637","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-derivatives","tag-ethereum","tag-ethereum-options","tag-market-analysis","tag-stablecoin","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/375637","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=375637"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/375637\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/375638"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=375637"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=375637"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=375637"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}