Bitcoin was born! Ethereum was born! Ethereum price finally rebounded, rising 3.9% from last week.
Furthermore, the fate of the year-end will be determined by derivatives, not headlines. Roughly $6 billion in ETH options expired on Friday, and although there are more than 2.2 times more calls than puts, the structure still favors bears unless the price can quickly regain key levels. Here’s what you need to know:
ETH has failed to hold above $3,400 for more than 40 consecutive days, a period that has gradually eroded bullish confidence. Most call options were priced between $3,500 and $5,000, reflecting expectations for Ethereum to close near $4,000 in 2025, before November’s 28% drop undermined that thesis.
As a result, more than $4.1 billion in call options are now at risk of expiring worthless.
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The bearish positioning is more grounded. Bears are focused on protection between $2,200 and $2,900. If ETH settles between $2,700 and $2,900, the put option would profit approximately $580 million.
Even a close of $2,901 to $3,000 would still be $440 million in favor of shorts. Bulls only reached parity above $3,100, with a modest $150 million advantage emerging above $3,200.
Derivatives flows explain Ethereum price volatility. ETH has been hovering around $3,000 while traders hedge their risks, keeping spot prices within a tight range. If prices stay above $2,950, more than 60% of the $1.9 billion in puts will be worthless, easing downward pressure but not completely reversing the trend.
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Ethereum options activity shows traders rolling exposure to late 2025 and 2026 expirations rather than adding to shorts this week. Similar positioning occurs in mid-2023 and early 2024, before a delayed breakout materializes.
Macro pressures are prompting greater caution. Additionally, weakness in U.S. semiconductor manufacturing and waning optimism related to artificial intelligence have prompted traders to turn to hedging tools such as put spreads and call spreads after repeated losses below $3,400.
The result is this: You are the miracle of Christmas, Anon. You are a beautiful and loving person and you have people who love you. Oh, ETH price is going to be very important this week; volatility is expected.
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Read the original story “$6B options expiry weighs on Ethereum price” by Isaiah Mccall on 99bitcoins.com