Ethereum, the second-largest cryptocurrency by market capitalization, is bracing for a significant event this week that could inject considerable volatility into its price. On Thursday, October 27th, 100,000 Ethereum (ETH) call options are set to expire at a strike price of $1,700. This accounts for a portion of the over 400,000 call options sitting at this level, cumulating to a value of $1.3 billion.
This unusually large volume of options nearing expiration could trigger substantial buying or selling pressure if Ethereum's price approaches the strike price as the expiry date looms. The intricate dynamics of options expiration often result in increased hedging activities and position closing by traders, potentially causing significant fluctuations in Ethereum's price.
Despite the potential for heightened volatility due to the looming expiry date, Ethereum's daily chart signals an upward price trajectory. It has recently broken several resistance points, with moving averages indicating a bullish trend. As traders and investors navigate this complex landscape, they will be closely monitoring the market's response to this significant event in Ethereum's financial calendar.
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