ETH Options Show Optimism, But Is A Drop Below $2,600 Looming ?

Investors in Ether (ETH) are closely monitoring the evolution of the options market, where a clear majority of contracts bet on a rise in prices in the medium term. However, this bullish dynamic is tempered by persistent volatility and a critical threshold at $2,600, below which $500 million in liquidations could be triggered. As the deadlines for February and March approach, the market oscillates between hope and caution.

Ether options send a bullish signal

The options market for Ether shows cautious optimism, fueled by massively bullish positions. According to CoinGlass, over 70 % of open positions are calls, indicating bullish anticipation among investors. These contracts focus around the thresholds of $3,000 and $4,000, suggesting confidence in a significant rebound of the asset. Nicolai Sondergaard, an analyst at Nansen, confirms this trend: “the options market for ETH is clearly bullish, with a low Put/Call ratio that enhances this optimism.”

Despite this setup, Ether still struggles to regain its record level. Since its historical peak of $4,890 in November 2021, the asset is down 44 %, registering a mixed performance in the short term. Thus, over the past month, ETH shows a decrease of 21 %, and its recent evolution demonstrates stagnation that has yet to fulfill traders’ hopes.

The liquidation risk below $2,600 : a key factor for investors

While the overall trend seems bullish, large investors are not overlooking the risks of correction. About 22 % of block trades on options are puts, indicating a hedge against a potential downturn. “Some large players are protecting themselves against a drop, and the implied volatility of high-value contracts reinforces this caution,” Sondergaard emphasizes.

One of the main points of attention concerns the level of $2,600, which acts as a critical barrier. A drop below this threshold would lead to a massive liquidation of $500 million across all exchange platforms, which could intensify selling pressure and trigger a downward spiral. Additionally, trade tensions between the United States and China, which affect financial markets, could also weigh on the prices of bitcoin and Ether in the coming weeks.

Investor positioning in the Ether options market reflects a measured hope: while the majority of players are betting on a rise, a brutal correction remains a plausible scenario. The maintenance of the $2,600 threshold will be decisive in avoiding a wave of liquidations that could heighten volatility. As the deadlines for February and March draw closer, the coming days could mark a major turning point for the trajectory of the second largest asset in the crypto market.