- Ethereum’s rally above $3,650 ignites bullish momentum across broader crypto markets.
- Surging implied volatility in ETH signals traders betting on aggressive price swings.
- Institutional demand for BTC options surges as traders chase breakout opportunities.
Ethereum’s explosive rally past the $3,650 mark has redefined the narrative in the crypto markets this week. With nearly $6 billion in options expiring on July 18, market sentiment flipped sharply from caution to optimism.
Ethereum took center stage, outpacing Bitcoin and fueling a broad market rebound. This massive expiry, which represented more than 10% of the total open interest, played a critical role in triggering bullish momentum across the board.
Options Data Reflects Shift in Market Dynamics
According to Greeks.live data, 240,000 Ethereum options expired, with a balanced Put Call Ratio of 1.0. The Max Pain point stood at $2,950, and the total notional value hit $880 million. Meanwhile, 41,000 Bitcoin options expired with a Put Call Ratio of 0.78 and a Max Pain level of $114,000, totaling $4.93 billion in notional value.
Interestingly, Ethereum’s implied volatility surged significantly, with major term IV levels touching 70%. Bitcoin’s IV remained more stable at around 40%, suggesting ETH traders anticipate wider price swings. This divergence implies ETH is currently more favored for aggressive directional bets, while BTC remains a steady play for structured strategies.
Institutional FOMO Heats Up in Options Market
Block call options for Bitcoin have seen remarkable activity in recent weeks. On most days, over 30% of options volume has come from these large, institutional trades.
This pattern highlights growing FOMO among big players who are now eager to capture upside exposure in BTC. The increased appetite for risk reflects a sentiment shift. Traders no longer fear downside but are chasing potential breakouts.
Moreover, the imbalance between Ethereum’s price action and its Max Pain level suggests bulls are firmly in control. ETH’s strong run, without significant pullbacks, signals renewed confidence among retail and institutional traders alike.
Price Performance Reinforces Bullish Outlook
As of press time, Bitcoin is trading at $119,279, marking a 0.90% daily gain and up 1.39% over the past week. Its market cap stands at over $2.37 trillion, supported by a circulating supply of 20 million BTC.
Ethereum, however, has outshined its counterpart with a 5.48% surge in 24 hours and a massive 21.56% gain in the last 7 days now priced at $3,625.83. With a market capitalization of $436 billion, ETH is pushing new momentum into altcoin markets.
