According to data from Deribit, the term structure of open interest in Ethereum options reveals a concentration in call contracts, consisting of more than 617,000 contracts expiring at the end of June with a face value exceeding $1.8 billion.
Ethereum Options Traders Predict $3,600 for June Expiration
This significant number of call contracts and their significant nominal value may reflect confidence in Ethereum’s potential to gain value by the end of June.
Intensifying interest could also support the price of the digital asset if derivative investors choose to exercise their options when the price begins to exceed certain strike prices specified in the option spread.
According to CoinShares Research Associate Luke Nolan, strike prices for June expiry calls are concentrated above $3,600, with $6,500 being the most preferred strike price.
The analyst highlighted a significant notional value of $192 million associated with the largest open interest before June expiration at a strike price of $6,500, reflecting confidence among some investors in Ethereum’s ability to reach or exceed that level.
“The largest open interest for the June expiration is concentrated at a strike price of $6,500 with a face value of $192 million,” Nolan said in a statement.
The data also shows that the number of outstanding calls has increased compared to open positions in Ethereum options ahead of the late June expiration.
A call options ratio below one indicates that the buying volume exceeds the selling volume and there is an upward trend in the market.
An investor who buys a call option is implicitly assumed to be in a bullish trend in the market, while an investor who buys a put option is assumed to be in a bearish trend.
*This is not investment advice.
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