– Ethereum put and call ratio on Deribit has risen this week.
– ETH bullish liquidations have also jumped in the past 2 days.
– Put and call ratio slips.
Ethereum has seen a significant pullback in price this week, with the cryptocurrency falling from a high of $1,600 to a low of $1,500. The retreat from the crypto bull market has coincided with a rise in the put/call ratio on Deribit, a key options market for Ethereum. The ratio, which is an important indicator of fear and greed in the crypto asset class, has risen from 0.24 to 0.3 in recent days.
At the same time, Ethereum’s bullish liquidations have also jumped significantly in the past two days. This indicates that traders who had gone long on the crypto asset are now closing their positions. This is likely due to the recent weak corporate earning reports coming out of the United States, which have put a damper on the optimism that had been building up around the crypto market.
The put/call ratio, which measures the number of puts placed in the market relative to the number of calls, is an important tool that traders and investors use to predict whether an asset will rise or not. Generally, a lower ratio is preferred since it means that there are more buyers in the options market. However, it is important to note that The Block’s data only includes Deribit, and does not include other exchanges.
The data from CoinGlass also shows that the number of short liquidations in key exchanges has risen to the highest point in recent days. This suggests that traders who had gone short on Ethereum have now closed their positions, which could be a sign of a further retreat in price.
Overall, the Ethereum market is showing signs of weakness and the put/call ratio is a key indicator to watch in the coming days. If the ratio continues to edge higher, it could be a sign that the crypto asset is heading for a further retreat.