The $730 million ETH option expires on Friday, and the Ethereum bulls maintain control

Ethereum (ETH) initiated a rally on April 25 that culminated in a 90% increase that pushed its price to $4,200. This non-stop rally has been fueled by the phenomenal growth of decentralized finance (DeFi) applications. The total value locked in DeFi exceeds $74 billion, a 51% increase in 18 days. the

The rally has been undermining neutral to bearish put (sell) options, giving bulls more momentum to continue higher. A total of $730 million in ETH options will expire on May 14, with the bulls in full control due to the majority of call (buy) options.

This Friday, $730 million in Ethereum options will expire: Jinse Finance reported that a total of $730 million in Ethereum options will expire this Friday (May 14), and call (buy) options account for Majority, bulls have full control. [2021/5/14 22:00:40]

Ethereum Network Daily DEX Trading Volume/USD Source: DeBank

Trading volume on decentralized exchanges (DEXs) also hit a new high on May 9, surpassing $5 billion. This roughly equates to Coinbase’s average daily trading volume, which is a 150% increase from the previous month.

At first glance, the data favors the bears

58COIN Official: Currency trading will start to charge and access rebates this Friday: According to the official announcement of 58COIN, its currency trading area will start to charge 0.05% (10,000 5) this Friday (April 10) Fee, and will be synchronously connected to the invitation rebate system. Previously, the 58COIN trading free strategy has been implemented for 852 days. See the original link for details. [2020/4/8]

Regardless of the reason for Ethereum’s rise, weekly expiry options are gaining weight as open interest increases. This data means that traders should not overlook the importance of the 176,000 Ether options contracts due to expire on May 14.

Dynamics | Financial OneConnect will be listed on the New York Stock Exchange next Friday with a maximum fundraising amount of approximately US$500 million: Financial OneConnect, a financial technology subsidiary of Ping An Group, updated its U.S. The F-1 prospectus document submitted by the Exchange Commission (SEC) is planned to be listed on the New York Stock Exchange on December 13 under the stock code "OCFT". This also means that OneConnect will soon become the first subsidiary of Ping An Group to go public in the United States. (IPO knew earlier)[2019/12/3]

The open interest and number of contracts of Ethereum options on May 14 calculated according to the strike price Source: Bybt

As of Friday's expiration, 76,700 call (buy) options remained open, currently worth $228 million. A call option buyer can buy Ethereum at a fixed price at a certain date in the future. Therefore, this tool is more frequently used in neutral to bullish strategies. the

Put (sell) options, on the other hand, offer the buyer the ability to protect against negative price fluctuations. As such, neutral to bearish strategies need this tool, with a total of 99,000 contracts currently on May 14 and an open interest worth $371 million.

Digging a little deeper gives different results

As can be seen from the call-to-put ratio of 0.77, the figure initially reflected bearish conditions. However, having the right to sell Ethereum at $3,200 on Friday didn’t help much. the

Only 16,000 ETH puts exist at $3,700 or higher. the

That $60 million in open interest doesn't seem to matter as there are 45,000 call options at $3,800 or less. Those options are currently worth $169 million, giving the bulls a net advantage of $109 million.

Bears get a small benefit from pushing prices lower

If the bears manage to push the price below $3,500 by 8:00 AM UTC on Friday, it will reduce their disadvantage by $86 million. So they have an incentive to push prices down, at least until Friday's expiry.

In the long run, unless there is pressure from the U.S. regulatory side, Ethereum’s rise to $5,000 remains a clear goal for the bulls. the

Investors and market makers are now keeping a close eye on SEC Chairman Gary Gensler, who has yet to set a deadline for establishing a regulatory framework despite his recent address to Congress. ‍

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