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| Ethereum Options Traders Turn Bearish Ahead of Token Unlock |
Options traders in Ethereum (ETH) have turned slightly bearish ahead of the token unlock. Despite this sentiment, the cryptocurrency has been holding steady above the $1,700 level. Open interest in Ethereum has risen, and there is a spike in interest among crypto market participants. According to data from options intelligence tracker Blofin Academy, the uncertainty surrounding the Shanghai upgrade scheduled for April and the limited hedging attributes of ETH compared to BTC, are the drivers of the bearish sentiment.
Ethereum co-founder Joseph Lubin has responded to critics who argue that ETH is a security. Lubin stated that it is unlikely that the US financial regulator, the Securities and Exchange Commission (SEC), will classify Ethereum as a security. US regulators have differing opinions on whether the altcoin should be classified as a security. While Gary Gensler, chairman of the SEC, believes ETH is a security, the chairman of the Commodity Futures Trading Commission (CFTC) has stated that ETH is a commodity.
The Ethereum Binance futures open interest has hit a level previously seen during the collapse of Three Arrows Capital (3AC) in July 2022, when the Ethereum price was at $1,100. Despite this, the current price of Ethereum is holding steady above $1,700. This may be due to the rise in open interest and the spike in interest among crypto market participants.
The uncertainty surrounding the Shanghai upgrade may be a factor in the bearish sentiment among options traders. However, Lubin's assurance that Ethereum is not likely to be classified as a security may alleviate concerns among Ethereum holders. The ongoing debate among US regulators about whether ETH should be classified as a security or a commodity highlights the need for clarity in the cryptocurrency space. Despite this debate, Ethereum continues to attract interest from investors and traders alike.
