"Option Traders Increase Ethereum Bearish Bets... Potential for Cascading Long Position Liquidations"

CME options investors are betting on Ethereum (ETH) price decline, according to analysis.

On the 26th (local time), Thomas Erdosi, Product Director at CF Benchmarks, said in an interview with The Block, "Ethereum options traders (March expiry) are increasing their bearish bets on CME," noting that "there has been a significant increase in open interest (OI) for Ethereum options with a strike price of $2,000." He added, "This indicates investors are expanding their short positions in preparation for further Ethereum decline," and "funds are flowing out of $7,000 call options."

There are also concerns about additional price drops due to Ethereum long position liquidations. Alvin Khan, COO of Vigit Wallet, told The Block, "If Ethereum falls below $1,926, $1,842, and $1,739, three MakerDAO long positions could be liquidated," adding that "This amounts to approximately $340 million, and if liquidations occur, downward pressure on Ethereum will increase dramatically." He mentioned that "MakerDAO has already liquidated $296 million worth of Ethereum positions," indicating that forced liquidations of Ethereum long positions have begun.

As of 8:59 PM, Ethereum is trading at $2,466 on the Binance USDT market, up 1.37% over the past 24 hours.