Ethereum options traders are slightly bearish amid uncertainty about the Shanghai upgrade and the ETH token unlock.
Co-founder of Ethereum, Joseph Lubin, believes that it is extremely unlikely for Ethereum to be classified as a security.
Ethereum price holds steady at the $1,700 level with rising market interest in the altcoin.
Ethereum, the second-largest altcoin by market capitalization, is holding steady above the $1,700 level despite slight bearish sentiment among options traders. Analysts have noted a rise in open interest in Ethereum, as co-founder Lubin assures the ETH community that the altcoin is not a security.
Ethereum options traders turn bearish on the altcoin
Ethereum options traders turned slightly beartish while Bitcoin trader sentiment leaned towards neutral ahead of the quarterly settlement. Based on data from options intelligence tracker Blofin Academy, the uncertainty surrounding the Shanghai upgrade scheduled for April and the limited hedging attributes of ETH compared to BTC, are the drivers of the bearish sentiment.
Despite bearish sentiment among options traders, there is a spike in interest among crypto market participants. Ethereum Binance futures Open Interest hit a level previously seen during the collapse of Three Arrows Capital (3AC) in July 2022. Ethereum price was at $1,100 at the time.
The above chart shows the open interest in Ethereum has hit levels previously seen during the 3AC collapse, and the price is holding steady above the $1,700 level.
Ethereum co-founder assures holders ETH is not a security
Ethereum co-founder, Joseph Lubin, responded to critics that argue ETH is a security. Lubin stated that it is unlikely that the US financial regulator, the Securities and Exchange Commission (SEC), will classify Ethereum as a security.
Lubin was quoted as saying:
I don’t think there’s any point to speculate on something that is extremely unlikely.
US regulators have differing opinions on whether the altcoin should be classified as a security. While Gary Gensler, chairman of the SEC believes ETH is a security, the chairman of the Commodity Futures Trading Commission (CFTC) has stated that ETH is a commodity. Despite regulators remaining divided on the issue, Lubin assures ETH holders that the asset is not likely to be classified as a security.