It is time for options expiry, and the Ethereum market stands divided. As the broader market sees chaos, traders from all sides have their reasons for being biased at the moment. ETH has seen downward actions for more than one week now. However, the leading alternative coins had kept their long-term bullish outlook intact. Though Ethereum dropped almost 11% of its value over last week, it still hovers above $4,000. While writing this analysis, Ethereum traded at $4,167.
Uptrend Chase Continues?
Even as near-term retracement does not prompt fundamental fluctuations, it might be vital to monitoring the current market sentiment for what to anticipate in the up-and-coming sessions. Skew data stated that 164.1 K ETH contracts would expire in batches – 155.8K on December 10 (today) and 8.3K on December 11 (tomorrow).
The alt's chart indicates put, and, call contracts are somewhat even for the two days. That shows an intense push and pull between bearish and bullish traders.
Skew's price chart highlights that call contracts would be attractive in levels beyond $4,000 while puts overtake the lower level. Though the aspiration, bearish momentum gained more steam during today's sessions. While publishing this content, users purchased nearly 3338 DBT put contracts as investors anticipated a lower move to $3,500. Market players also bought other 1907 contracts near the $4,000 strike price.
However, beware that bullish traders exist in the market. 1651 and 1939 DBT call contracts contributed to Friday's options volumes. These prices have their strike price at $4,500 and $4,300, respectively.
With the above narrative, it appeared that most traders in the Ethereum market are pessimistic about the alt's price.
Indeed, ETH has its price at an indecisive moment. The price chart shows that Ethereum has dipped under $4,000 twice this month, on December 4, as the overall market sustained crashes, the 48 hours later, on December 6. Besides these instances, ETH has maintained its price actions beyond the threshold mentioned above.
For now, Ethereum recovers from the daily low at $4,021. Moreover, the last candle and the emerging one stay green at this writing, showing the coin's determination past $4,000. If the alt maintains this trend, bearishness will fade gradually. However, failure to hold $4,000 can mean sharp corrections. That can see traders selling to avoid further losses, prompting a selling bias.