According to Chinese cryptocurrency blogger and writer Colin Wu, some crypto whales are thought to have placed put option bets on Ethereum’s decline to the $400 mark. Wu named @Blofin Official as the user who posted the cryptocurrency analytics information.
Recently, there has been a large order of 26,000 ETH put options with a strike price of $400 and an expiration date of Jun 30. Some traders believe this is the tail management behavior of crypto whales. According to @Blofin_Official pic.twitter.com/VmYC44939h
— Wu Blockchain (@WuBlockchain) January 7, 2023
Whales Bet on Ethereum To Plunge to $400 This Summer
They tweeted that a buy order for 26,000 Ethereum put options had been made. Its options have a $400 strike price and will expire on June 30 of this year. A put option’s strike price indicates that even if the underlying asset’s price declines, a trader can sell it at this price when the option expires.
I think they believe strong selling pressure after unlock ETH from ETH 2.0
— Cryptoalert 🛸 (💙,🧡) (@cryptuj_alert) January 7, 2023
When the Merge was implemented, Ethereum transitioned from the proof-of-work consensus process to the proof-of-stake one, making it more energy-efficient than first-generation cryptos like Bitcoin, LTC, DOGE, and others mined using PoW.
ETH/USD 4-hour chart | Source: TradingView
At the time of publication, Ethereum is trading at $1,263, showing a modest increase of 1.53% over the last 24 hours.
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