FameEX Hot Topics | Ethereum Bulls and Bears Battle Over This Week's $2.8B ETH Options Expiry

Ethereum has shown strong performance in September, but maintaining a price above $2,600 might be challenging, as indicated by recent data. Ether has been striving to stay above the $2,600 resistance level following a 15.1% gain from September 18 to September 23. This surge was partly driven by macroeconomic indicators pointing to a slowing economy, which, in turn, boosted the stock market and increased demand for short-term government bonds. Traders are now closely watching the upcoming $2.78 billion monthly Ether options expiry on September 27, as it could reinforce the current bullish momentum.

The rally in Ether’s price has been significantly influenced by the recent U.S. Federal Reserve interest rate cut, indicating a shift towards more accommodative monetary policy. This move also pushed the S&P 500 index to an all-time high on September 24. Additionally, a decrease in the S&P Global Manufacturing PMI on September 23 raised investor concerns about the economy's health, further supporting the positive outlook for cryptocurrencies like Ether. Consequently, yields on the U.S. 2-year Treasury bond dropped to their lowest level in 24 months, as investors sought the safety of government-backed assets, benefiting cryptocurrencies seen as scarce assets.

Despite this recent upswing, Ether has experienced a 33% decline over the past four months. This drop followed the highly anticipated U.S. launch of a spot exchange-traded fund (ETF), which underperformed, leading to $684 million in outflows, according to Farside Investors data.

The current open interest for options amounts to $2.77 billion, comprising $1.82 billion in call (buy) options and $0.95 billion in put (sell) options. While bulls seem to have the advantage, with $1.47 billion of call options aiming for prices at $2,700 or higher, these positions will expire worthless if Ether stays below that level by September 27. This situation provides bears an opportunity to shift the momentum despite having fewer put options.

Furthermore, as Ether’s price momentum builds, demand for its smart contract capabilities has also risen. Ethereum network transactions increased by 15% in the seven days leading up to September 24, pushing average transaction fees from $1.45 to over $4.50 within ten days, signaling growing activity and interest in the Ethereum network.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.