According to Cointelegraph, recent data from a decentralized finance (DeFi) options protocol indicates that traders are more skeptical about Ether's (ETH) performance compared to Bitcoin (BTC). Derive founder Nick Forster reported on October 13 that ETH has nearly 2.5 times the number of calls sold compared to calls bought, suggesting traders believe the upside potential for ETH is capped.
The report, citing data from Derive, revealed that at the end of September, Ether Calls Sold stood at 34.5%, while Calls Bought were at 15.5%. This indicates that traders expect ETH's price to either stay the same or decline. Forster noted that the relatively small number of calls bought supports the notion that ETH's potential for significant price gains may be limited in the near term.
In contrast, Forster highlighted the significant amount of Bitcoin Open Interest (OI) at the $75,000 and $100,000 strike prices, suggesting traders are positioning for significant movement. These levels could act as key barriers or breakout points. The skew in ETH open interest, with nearly 2.5 times more calls sold than bought, further suggests that traders see limited upside for ETH at present.
Forster also mentioned that the divergence between Bitcoin and Ethereum will be crucial to monitor as the United States presidential election on November 5 approaches. At the time of publication, Ether was trading at $2,615, up 7% since October 7, according to TradingView data.
Despite the skepticism, other data points to long-term confidence among Ethereum traders. On October 8, Cointelegraph reported that almost a third of all Ether has been staked, showing long-term interest in the crypto asset and the rewards it offers. Onchain data provider IntoTheBlock stated that 28.9% of all Ether had been staked at that time.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
