The crypto space has been experiencing quite terrible and uncertain days since the beginning of 2022. However, the trend has quickly slipped into a deep downtrend since trading began in May, which intensified a few days earlier.
Almost all crypto assets, including Bitcoin, Ethereum, etc., fall to 18-month lows, erasing gains made during the 2021 bull run. However, ETH prices are still holding strong above $1200, showing the possibility of a trend reversal to the north.
Huge ETH options expire on June 24th, will ETH price make it to $1700 or drop below $900?
Market participants do not have to wait long for a major trend reversal as it is fast approaching in 10 days. Yes! You read that right, ETH price will see extreme volatility as a massive option expiration looms.
A few options are expiring in the next few days, but the biggest, the monthly expiration, can lead to huge price volatility. According to data from Skew, almost 948.2k ETH is on the verge of expiry, which could be a bullish scenario for the asset.
The chart above shows that the buy orders or calls are larger than the sell orders or puts. Since dealers always place bets considering market conditions, the ETH price could largely get back on track in the next 10 days. However, the process is still fairly straightforward and the chances of dealers reversing their bet cannot be discounted. In such cases, there may be a significant fall in the price at this point.
Hence, the coming 10 days are extremely crucial for ETH prices as a strong consolidation above $1200 could build confidence in traders who might place a “call” bet. The more buy orders, the greater the chances of Ethereum price stabilization. Otherwise, if prices dip below $1,100 or $1,000, put orders could outperform call orders and increase upside pressure on the second largest asset.
Overall, Ethereum has been a stable asset with less price volatility. And if the asset continues to accumulate strength above $1200, there is a greater chance of scaling back above $1700.
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