PANews November 26 reports, according to The Block, Wintermute analysts pointed out in their weekly cryptocurrency market update: "In the past few trading sessions, capital flows have shifted in favor of Ethereum, with open interest on exchanges reaching an all-time high over the weekend." The shift from Bitcoin to Ethereum is characterized by a sharp rise in Ethereum's implied volatility, with the put-call skew reaching a 12-month high, indicating a strong preference for upward exposure among investors. Wintermute analysts noted that traders are actively pushing the market higher by buying call options.
The Wintermute report states that the large trades over the weekend included call spreads for Ethereum expiring on December 27, with strike prices ranging from $3,600 to $5,000; the significant 8-10 point premium in recent Ethereum call contracts may attract hedging activity through a 10-25 day risk reversal. This upward momentum for Ethereum has also sparked demand in the OTC market for ERC20 tokens, with meme coin Pepe becoming the most prominent beneficiary.
