Is It Time to Buy Ethereum ?

Ethereum is experiencing significant volatility due to the potential approval of a spot Ethereum ETF. As of now, Ethereum has rebounded 3% from yesterday’s lows, trading around $3,250.

Ethereum Options Expiry

Data from the derivatives platform Deribit shows that 499,811 Ethereum options are expiring today, with a notional value of $1.622 billion and a max pain point of $3,300. The max pain point is the price that causes the most discomfort for option holders.

The put-call ratio stands at 0.46, indicating a strong preference for call options over puts. This suggests a generally optimistic market outlook.

Recent Price Movements and Market Sentiment
Ethereum’s price recovered to $3,250 today after falling to a support level of $3,150. This drop appeared to be a reaction to the spot Ethereum ETF approval. Spot Ether ETFs have experienced consecutive days of outflows, with Grayscale’s ETHE seeing significant losses.

Is It a Good Time to Buy Ethereum?
Ethereum's recent behavior resembles Bitcoin’s after its ETF approval in January. Bitcoin’s price remained low for about two weeks before rising again. Analysts suggest that Ethereum might follow a similar trend and start rising by the end of August.

On-chain data from CryptoQuant shows that over 160,930 ETH entered Coinbase in the last two days. Despite 47,811 ETH flowing out, a net inflow of 113,119 ETH continues to put selling pressure on the coin.

A CryptoQuant analyst noted, “The Ethereum Netflow data may signal if Grayscale’s Spot ETF, ETHE, will continue to impact selling pressure.”