Ethereum Option Contracts Highlight Current Market Uncertainty
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After reviewing Ethereum (ETH) options for June 25, one can get the palpable sense of uncertainty in the market. At the moment, there are several bets for prices to fall below $1k, while other bets expect prices to soar above $3,800.
A new report by CoinShares, a digital assets management firm, reveals that several crypto funds now see positive investment inflows after weeks of record outflows. The report noted that Ether-based investment recorded a total of $47 million in inflows, which brought its market dominance up to 27%.
Another boosting factor for Ethereum is that DeFi protocols have a $48 billion total value locked (TVL), despite the substantial blow meted out to the sector following the recent Ethereum price crash.
The 57% increase recorded by Ethereum over the past three months should satisfy even the most optimistic investors. However, crypto traders prefer to exaggerate the importance of the market condition over the most recent weeks. That said, as the second-largest cryptocurrency fell from its recent all-time high at $4,380 on May 12, many traders rushed to place protective puts at $400.
Meanwhile, the highly-anticipated proof-of-stake consensus model transition (ETH2.0) could be the primary factor behind the bullish expectations in the market. The EIP-1559 upgrade proposal set for launch next month is a significant milestone for the network, and some traders have price targets ranging from $4,000 to $10,000.
At press time, there are 638,800 Ether option contracts set to expire on June 25, putting the total open interest at $1.75 billion.
Key Ethereum Levels to Watch — June 7
Despite the sideways bias seen over the weekend, Ethereum maintains broader upwards-bound momentum. At press time, the altcoin giant is struggling with the $2,800 resistance while receiving a steadfast upward push from our ascending trendline.
That said, a bullish bias could get reinstated if ETH breaks above the $2,900 line over the coming hours. Nonetheless, additional bearish efforts should get frustrated by the ascending trendline.
Meanwhile, our resistance levels are $2,860, $2,900, and $3,000, and our support levels are $2,650, $2,570, and $2,480.
Total Market Capitalization: $1.66 trillion
Ethereum Market Capitalization: $322.8 billion
Ethereum Dominance: 19.4%
Market Rank: #2
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