Ethereum (ETH) is facing a pivotal derivatives trade deadline as billions of dollars of options contracts approach expiration, with traders keeping their eyes firmly on the $3,000 price level. Although traders are betting on a rise, Ethereum’s near-term price trend remains uncertain. The outcome of this option expiry could help shape ETH’s next big move, either to the upside or downside, especially as investors reassess their subsequent expectations. Volatility and instability in November.
The price of Ethereum is currently hovering above $2,900 as the expiration of a large number of options worth around $6 billion approaches. This event is expected to play a major role in the formation of short-term price fluctuations This could have an impact on investor sentiment heading into 2026.
Ethereum options set to expire this Friday
Data from derivatives platform Laevitas show That $6 billion is ETH option expires on Friday, December 26th, with call positions outweighing puts by more than 2.2 times. Despite this imbalance, the bears still have the upper hand unless Ethereum price decisively breaks above $3,100.
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Earlier this year, many traders believed that Ethereum would rise significantly by the end of the year. However, those bullish expectations has been marred by a significant decline in November, leaving ETH’s current option expiration vulnerable to further downward pressure.
Call options remain mainstream Open interest (OI)many of these positions will expire if: Ethereum price does not recover And push it even higher. This creates a vulnerable situation, putting the market in a delicate position, and overly optimistic bets can be quickly undone if key price levels fail to hold.
Of note is the $3,100 price level. appeared As a key pivot ahead of the options expiry set for this Friday. Traders refer to this level as “maximum pain.” This is because it represents the price at which most option contracts expire worthless. Closing prices below this zone are bears control And that could open the door to further price declines. On the other hand, a significant break above $3,100 could quickly reverse momentum.
Currently, approximately $3.8 billion of ETH options are expected to expire on Deribit, the world’s largest Bitcoin and Ethereum options exchange. In addition, over $23.6 billion Bitcoin options set to expire on Fridaywhich could lead to significant volatility in an already fragile market.
Analysts expect further volatility in Ethereum
A huge $6 billion Ethereum options expiry is just around the corner, and traders are bracing for it. Significant market fluctuationssince this event can cause sharp and decisive movements in the ETH price. Separately, crypto analyst Ted Pillows said: predict ETH volatility increases further when the price of ETH moves in one of two main directions.
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He says Ethereum is currently in a no-trade zone. However, volatility could occur if the price regains the $3,000 level or retests the $2,700-$2,800 zone.
Featured image from Pixabay, chart from Tradingview.com
