The gain of Ethereum of 330% year-to-date has been the result of unprecedented growth in the NFT and DeFi sector. Major evidence of this arrives from OpenSea, the largest marketplace of NFTs, which recently surpassed the impressive mark of around $10 billion in its accumulated trading volume.
However, most crypto traders have been quite worried about the price correction of 15% that would follow the $4,870 all-time high on the 10th of November- which could indicate that a far greater bearish movement was in the works. The rupture of the 55-day ascending channel would reinforce this thesis, with the $550 million options expiry of Ether to bring about favors.
Ethereum Price Could Decrease Exponentially
The total value locked of Ethereum stands at $86 billion in smart contracts, which would represent around 70% of the market as well as the metric which was increased by around 25% over the last couple of months, implying that the leaders of the industry weren’t affected by the average gas fees of the network standing at $50.
This was soon coupled with regulatory uncertainties, especially in the United States, which soon eclipsed the market bull-run of the cryptocurrency market. For example, on the 18th of October, the office of the Attorney General of New York gave a cease and desist to two lending platforms of cryptocurrency which were operating in the state.
Irrespective of the reason which has reduced the price of Ethereum, the excessive optimism of the market bulls on the $500 million options expiry is bound to provide bears with further ammo which they could use to pressure down the market.
The $275 million call options would definitely virtually match the $280 million that Ethereum has in put instruments- at least at first sight. Still, the call-to-put ratio of 0.98 is quite deceptive as some of the prices seem to be quite far-fetched now.