Ethereum sees mixed performance with $20 million contract expiry
A report by Bybit and Block Scholes highlights mixed performance in the Ethereum (CRYPTO:ETH) derivatives market compared to Bitcoin (CRYPTO:BTC).
Ethereum perpetual swap open interest declined significantly due to the liquidation of overleveraged long positions that had built up during a period of optimism.
These liquidations followed falling ETH spot prices, as outlined in the report shared with crypto.news.
The data also reveals a divergence between ETH perpetual swaps and ETH futures contracts.
While perpetual swap contracts saw reduced open interest, ETH futures contracts maintained their levels during a pause in upward price momentum.
Despite an uptick in positioning for both Ethereum and Bitcoin, the total size of open positions has not recovered following the expiration of approximately $20 million in contracts at the end of November 2024.
The report notes that traders who previously held expiring November contracts have not re-entered the market with the same volume.
In contrast, Bitcoin perpetual positions remained stable, even after the cryptocurrency experienced a pullback from highs of over $100,000.
The report also notes that Ethereum continues to outperform Bitcoin in options open interest as year-end expirations approach.
However, trading volumes have decreased, reflecting cautious sentiment among market participants.
The options term structure for Ethereum reveals higher realised volatility compared to future expectations, signaling a distinct difference in market sentiment compared to Bitcoin.
Bitcoin's term structure shows a flatter volatility curve, suggesting a more balanced outlook.
Perpetual swaps remain a widely used derivative in cryptocurrency markets, enabling traders to speculate on asset prices without owning them.
At the time of reporting, the Ethereum (ETH) price was $3,910.04, ranked #2.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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