Ethereum’s Performance Amid Bitcoin’s Success

While Bitcoin (BTC) broke new records by surpassing its previous all-time high (ATH) from the 2021 bull run, Ethereum (ETH) remains under scrutiny for its lackluster performance.

ETH has yet to surpass its ATH of over $4,890 from November 2021 and is currently trading approximately 44% lower.

However, options traders are showing optimism about Ethereum’s medium-term prospects. Nansen research analyst Nicolai Sondergaard noted that Ethereum options traders are predominantly bullish.

According to Sondergaard:
– More than 70% of the open interest in Ethereum options is in call contracts.
– Increasing numbers of investors are betting on ETH’s rise.

Despite this optimism, caution persists among investors. Sondergaard stated:
> “Ethereum options traders are primarily focused on calls, particularly with expiration dates in February and March, targeting the $3,000-$4,000 range.”

The low Put/Call Ratio further bolsters investor confidence in potential growth for Ethereum.

Despite this bullish sentiment, notable whale traders remain vigilant about Ether’s price fluctuations, revealing some hedging against downside risk with puts, comprising 22% of block trades. Sondergaard remarked:
> “While generally bullish, major players are also wary of potential downturns.”

As of now, Ethereum has gained 4.6% over the last 24 hours and is trading at $2,805.

This is not investment advice.