Ethereum (ETH) is approaching a key derivatives deadline as billions of dollars in options contracts come to an end, putting the $3,000 price level in the spotlight for traders. While investors are betting on a move higher, Ethereum’s short-term price action remains uncertain. The outcome of the option expiration could support shape ETH’s next huge move up or down to lower levels – especially as investors reassess their expectations in the aftermath November volatility and unstable conditions.
Ethereum’s price is currently holding above $2,900 amid the upcoming expiration of approximately $6 billion in options. This event is expected to play a major shaping role short-term price action and may influence investor sentiment in 2026.
Ethereum options expire this Friday
Data from the Laevitas derivatives platform show the $6 billion ETH Options expires on Friday, December 26, with calls outnumbering puts by more than 2.2 times. Despite this imbalance, the bears still maintain the upper hand unless the Ethereum price definitely goes above $3,100.
Related Reading: Ethereum Exchange Supply Just Plunged to Up-to-date Lows, Why It’s a Bullish Price Surge
Earlier this year, many traders positioned themselves for Ethereum to rise significantly at the end of the year. However, these bullish expectations have been weakened by November’s massive decline, leaving current ETH options vulnerable to further downward pressure.
Although call options still dominate Open Interest (OI)many of these items would expire worthless if Etherum price is not returning to normal and push higher. This creates a feeble setup and puts the market in a fine position where overly positive bets can quickly unwind if key price levels fail to hold.
It is worth noting that the price level is $3,100 emerged as a key turning point before the option expires next Friday. Traders call this level “maximum pain” because it represents the price at which most options contracts would expire worthless. A close below this zone could give bears control and potentially open the way to further price declines. On the other hand, a tidy break above $3,100 could quickly reverse the momentum.
Approximately $3.8 billion of ETH options are currently expected to expire on Deribit, the world’s largest Bitcoin and Ethereum options exchange. In addition, over $23.6 billion Bitcoin options expire on Fridaywhich could create significant volatility in an already volatile market.
The analyst expects further volatility in the Ethereum market
With a massive $6 billion worth of Ethereum options expiring on the horizon, investors seem prepared for it significant market volatilityas this event could trigger a piercing, decisive move in the ETH price. Separately, cryptocurrency analyst Ted Pillows predicts further volatility for ETH if its price moves in one of two key directions.
It says Ethereum is currently in a no-trade zone; however, there could be volatility if the price breaks above the $3,000 level again or retests the $2,700-$2,800 zone.
Featured image from Pixabay, chart from Tradingview.com
