Ethereum has been experiencing a pretty bearish regressing since the 1st of September, although its price has been struggling to break the resistance. The situation is so precarious that despite having some headwinds in different places, the bulls of this cryptocurrency will definitely profit around $115 million on the weekly Ether options expiry on the 8th of October. The pump of 21% over the last week has been just enough to ensure that the entire sum of $250 million- neutral-to-bearish put options- has been rendered worthless.
Regulatory fear limits the upside of Ethereum
It can be understandable that the negative headlines that have surrounded cryptocurrencies like Bitcoin and Ethereum have definitely subdued the prices of the currencies. One of the headlines that have been on the forefront has been the increase in regulatory scrutiny towards mining- with the government of China banning every single cryptocurrency activity. Quite a few crypto exchanges like Huobi and Binance have also gone ahead and halted most of their operations in mainland China.
Quite a few Ethereum mining pools were also forced to shut down their operations completely. This was then followed by a horde of negative press. One of them is the founder of Citadel Securities, which is one of the biggest market-making firms in the world, who stated that their company didn’t accept token currencies simply due to the regulatory uncertainties that surround this sector. The State Duma Committee in Russia has also organized talks that would be ramping up regulations that would protect investors.
With things currently standing the way they are, it seems that market bulls of Ethereum have quite a lot of control before they move into the options expiry- with definitive incentives for both sides as they try to push the price above $200.