ETH faces downside risk as traders bet on medium-term growth
ETH faces downside risk as traders bet on medium-term growth
Ether traders are showing signs of optimism for medium-term growth despite current volatility.
Data from CoinGlass indicates that more than 70% of open interest in the Ether options market is held in call contracts as of 10:35 a.m. UTC on Feb. 16. Investors are betting on a rise in ETH, particularly with strikes in the $3,000–$4,000 range. Research analyst Nicolai Sondergaard of Nansen noted, “The ETH options market is leaning bullish, but there’s a touch of caution.” This bullish tilt is occurring even though Ether has traded nearly flat over the past week and is down over 21% on the monthly chart, reports Cointelegraph.
Risks and external influences
Despite the optimism, Ether’s price remains about 44% below its all-time high of over $4,890 from November 2021. Analysts warn that a correction below $2,600 could trigger over $500 million in liquidations of leveraged short positions. External pressures further complicate the picture, with recent U.S. and China import tariffs intensifying global trade war concerns. Investors are watching closely as a potential meeting between U.S. President Donald Trump and Chinese President Xi Jinping could help ease these tensions. These geopolitical factors, combined with the evolving options market, may significantly influence both Ether and Bitcoin’s price trajectories in the coming months.
ETH exchange liquidation map. Source: CoinGlass.
As traders focus on the February and March expiration events, the current structure of the Ether options market may serve as an important indicator for medium-term recovery. Cautious bullish sentiment, balanced by hedging activity, suggests that while risks persist, investors are positioning themselves for a potential rebound in ETH that could reverberate throughout the broader digital asset landscape.
Read also: NYSE files for SEC approval to allow staking for Grayscale's Ethereum ETFs
