Bearish Sentiment Evident in Ether Options Despite Bullish Forecasts

Amberdata, a renowned cryptocurrency information tracking company, has revealed that options related to Ether are indicating a preference for lower prices in the next three months. However, there is a slight indication that there may be some strength in the following months.

One-Week Call-Put Skew Hits 3-Month Low

On Wednesday, the one-week call-put skew for Ether, which measures the demand for calls versus puts expiring in seven days, reached a nearly -8 level. This is the lowest level observed in over three months and suggests a prevailing inclination towards bets anticipating a decline in Ether’s price.

Meanwhile, there has been a significant change in the way people are betting on the price of ETH. In the short term, more people are making bets that the price will decrease, especially until April. However, for the long term, there are still many who believe that the price will rise.

According to the latest data, the skew remains negative, with the one-, two-, and three-month skews all displaying a pessimistic outlook.

Cautionary Short-Term Outlook

Imran Lakha, the founder of Options Insights, highlighted the sudden increase in ETH skew, linking it to the influence of call selling flows and the breach of key technical support at $2,400. Lakha emphasized the critical level for ETH at $2,150, suggesting that breaking this level could result in further declines.

However, recent market movements indicate a cautious short-term outlook for ETH, with an increasing demand for hedging strategies.

The latest data shows that Ether is currently trading at $2,220, reflecting a 1% decrease for the day. These dynamics within the options market add complexity to the overall sentiment surrounding Ether, leaving investors to navigate the contrasting signals in their decision-making process.