Eetterin kysyntäsignaalit heikkenevät 4 XNUMX dollarin hinnanerotuksen jälkeen

Options traders are getting ready for a short-term weakness after the Ethereum hit a two-year high. This will happen due to the locking of the cryptocurrency at a specific price.

Ethereum puts expiring in 30 and 60 days that users traded at a premium to calls. This happened just one day after the cryptocurrency’s value went over $4,000. The relative abundance of puts is possibly due to the possibility of the U.S. SEC not approving spot ETF by May this year.

Traders Are Bracing Themselves for an ETH Price Decline

ETH-vaihtoehdot traders are preparing for a value weakness in a short period of time. This comes a single day after the crypto coin managed to rise past the $4,000 mark to its highest point since late 2021.

The one-month call-put skew by Ether, which is an options market measure of sentiment, shifted to the negative side. This event hints at the indicative richness of puts or the options the users used to protect themselves against price declines.

Another thing that went in favour of put options is the 60-day gauge. On the other hand, the 90-day and 180-day metrics stay positive. All of this data comes from the crypto options flow shown on Deribit.

Jos et tiennyt, Deribit is a popular crypto options exchange that accounts for over 85% of the global industry activity.

With a put option, the buyer gets the right, but not the obligation to sell the featured asset at a prearranged price. A put purchaser is completely hopeless on the market. It often requires looking for ways to protect spot market holdings from potential value changes.

On the other hand, a call option provides protection against featured bullish activities.

The Influence of the U.S. SEC Approval of the Spot Ether ETF by May

As things stand at the moment, the U.S. SEC is very unlikely to approve a spot Ether ETF by May. The latest market insight post by QCP Capital explained the recent investors’ interest. It points out that the decision by the SEC is one of the main reasons behind their interest in short-term ETH.

The hopes of the SEC approving spot ETF mainly capitalized the 75% year-to-date gain in Ether. This would open the doors for traditional financial institutions to expose themselves to the second-largest crypto coin. All of that without even owning any Ethereum.

It’s worth mentioning that the SEC gave the green light to a dozen Bitcoin ETF: t back in January this year. Since that event, investors input billions of dollars into the featured ETFs. It resulted in the cryptocurrency going over $70,000, recording an all-time high.

This Monday, an ETF analyst at Bloomberg lowered their estimates for a spot Ether ETF to appear in May from 70% to 30%. JPMorgan, the investment banking giant, stated that the probability of an SEC approval for Ether ETF by May is less than 50%.

It’s worth pointing out that JPMorgan released this statement earlier this year. So, according to recent events, it definitely lowered its probability percentage.