The ethereum (ETH) options market shows ongoing strong appetite for bullish bets on ETH among traders, despite falling place prices. The issue now’s if this sounds like an indication that smart cash is positioning for any future rally, and when now is a great time for you to start dollar-cost averaging (DCA) into ETH.
The surprisingly bullish bias looking for ETH options was stated within the latest A Few Days Onchain report from Glassnode, in which the firm noted that the need for outstanding call options remains greater compared to norm from 2021.
A phone call choice is a bet the place cost of the asset will rise, while a put choice is a bet the cost will fall.
Based on Glassnode, there’s now as many as $5.2bn in outstanding call option value for ETH, that is “much higher” than was standard this past year. Simultaneously, put option positions have experienced a sharper stop by value than call option positions, with $294m in internet position value closed.
“In many different ways, it seems that ETH markets remain heavily utilized, levered up, and speculating on further upside, despite a -22% ETH cost correction,” the crypto analytics firm authored within the report.
Time for you to DCA into ETH
With your huge bullish bias within the ETH options market, it’s natural to inquire about if now is a great time for you to start moving gradually into ETH, possibly through the so-known as dollar-cost average (DCA) strategy.
The DCA strategy has in the past been a great way to invest in main cryptoassets, and stays popular in the Ethereum and Bitcoin (BTC) communities in an effort to invest without attempting to perfectly time tops and bottoms, which very couple of can do.
With ETH place prices now as little as they’re, it appears as though beginning to DCA into ETH now could lead to the lengthy-run. Along with the Merge already behind us and broadly considered successful, could it be really so surprising that sophisticated options traders have previously positioned themselves for any rally?
As Glassnode place it within their report:
“The Ethereum Merge would be a success, along with a historic one as you would expect. Years of dedicated research, development, and strategy have finally combined efforts to acquire a outstanding engineering task.”
Maybe it’s only dependent on time prior to the market also realizes this.
