en.bitcoinsistemi.com
While Bitcoin (BTC) broke new records by surpassing its previous $ATH seen in the 2021 bull run, Ethereum ($ETH) draws attention with its weak performance.
At this point, $ETH still hasn’t surpassed its $ATH of over $4,890 from three years ago (November 2021), while its price continues to trade around 44% lower.
However, options traders are bullish on Ethereum in the medium term. Nansen research analyst Nicolai Sondergaard said that Ethereum options traders are bullish.
Accordingly, Nansen analyst stated that more than 70% of the open interest of the options is in call contracts, and said that more and more investors are betting on $ETH and expecting an increase.
The analyst added that although investors expect a bullish outlook for Ethereum, they continue to act cautiously.
“Ethereum options traders are mostly focused on calls. There is a lot of focus on February and March expiration times, especially for the $3,000-$4,000 levels.
“The low Put/Call Ratio also supports investors' optimism. For these reasons, investors seem confident about medium-term growth in Ethereum.”
Sondergaard said that despite the optimistic outlook, whales are cautious about the $ETH price, indicating that there is still downside risk for $ETH.
“Some major players are hedging against downside risk in $ETH with puts (22% of block trades), suggesting that while they are generally bullish, they are also wary of downside risks,” the analyst said.
Ethereum, which has gained 4.6% in the last 24 hours, continues to be traded at $2,805 at the time of writing.
*This is not investment advice.