The biggest altcoin whales have opened their bets on Ethereum (ETH) that it will lose 4/1 in the coming weeks. Worries stem from the pressure exerted by massive put options.
Altcoin whales bet Ethereum will drop to $400
Crypto journalist and blogger Colin Wu tweeted that some crypto whales are believed to be betting that Ethereum will drop to the $400 level via put options. Wu cited Blofin_Official, who shared crypto analytics data. According to his tweets, 26,000 Ethereum put options have been ordered. The strike price is set at $400, options will expire on June 30 this year. The strike price of a put option means that when the option expires, an investor can sell the underlying asset even if it falls below that price level.
Therefore, some whales are likely to bet on Ethereum falling to the $400 level last seen in late 2020.
A user in the comment thread hypothesized that whales could expect the ETH price to drop as much as withdrawals are allowed after Ethereum’s Shanghai upgrade, which was locked in the ETH 2.0 deposit contract. This upgrade is scheduled for the first quarter of this year – six months after the mid-September merger.
When Merge was launched, Ethereum switched from the PoW protocol to the PoS protocol, thus saving more energy compared to Bitcoin, LTC, DOGE and other first-generation cryptos issued via PoW. Despite the update, which is expected to have a high impact on the price, some analysts are worried that the price may drop further.
Crypto analyst shares his pessimistic predictions about BTC and ETH
When we look at the two largest cryptocurrencies in the market, we see that Bitcoin (BTC) is in the green for the day, while its rival Ethereum (ETH) is in the red. An anonymous crypto analyst also took to Twitter to share some of his thoughts on BTC and ETH prices in this environment. In the post, the analyst stated that he is “not overly bullish” and still has a bearish bias for both BTC and ETH.
The analyst later added that if BTC holds $16.8k by next week, the crypto leader may change his mind about the possibilities. The post was finalized by the analyst estimating that BTC will likely drop to $15.6k next week instead.
cryptocoin.comAs you follow, BTC price is currently trading around $16,930 after a 0.05% price increase in the last 24 hours. In addition to this, the crypto king has also increased by more than 2% compared to last week. ETH, on the other hand, is trading in the $1,260 region, down 0.5%. However, the altcoin is still in the green more than 5% over the past seven days.
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