© Reuters
Investing.com – Ethereum is up nearly 10% in the past week, which could give the impression that the market has come out of a rut. The $883 cycle low does not look like it should be tested again, as after hitting it last June, there has been a fundamental leveling with the move from proof of work (PoW) to proof. of stake (PoS).
But this circumstance could also be fatal to . Already since December 2020, millions of ETH have been assigned to the PoS Beacon Chain for stacking. Those who have sent ETH to the Beacon Chain cannot reuse it yet. The tokens are frozen and will only be freely available to their owners again with the Shanghai update, expected in the first quarter of 2023.
It is possible that with this event the selling pressure will increase significantly and this is how whales in particular protect themselves against falling prices. Crypto journalist Colin Wu found that there are put options for 26,000 ETH at an execution price of $400, which expire on June 30.
The closer the price gets to this level, the higher the price of the options. We do not know whether it’s really simple hedging or betting on a $400 drop.
By Marco Oehrl