Ethereum Bears Take Over: Put/Call Ratio Rises, Price Drops 5.90%

• Ethereum’s put/call ratio has risen slightly in the past few days, from 0.24 on January 4 to a high of 0.3.
• Ethereum’s price has fallen by more than 5.90%, retreating to $1,500 on Thursday.
• The increase in the put/call ratio and the surge in Ethereum’s bearish liquidations could indicate that the market is uncertain about the asset’s future.

The cryptocurrency market has seen an incredible comeback this month, but this week’s news of weak corporate earnings from the United States has put a damper on the rally. Ethereum, the world’s second largest cryptocurrency by market capitalization, has also been affected by the news, and its price has retreated to $1,500 on Thursday.

In addition to this, data from the options market shows that Ethereum’s put/call ratio has been steadily increasing in the past few days. Put and call trades are used by traders and investors to predict whether an asset will rise or not, and the put/call ratio is an essential tool for this. The Block’s data shows that Ethereum’s put/call ratio has risen from 0.24 on January 4 to a high of 0.3. This indicates that there is a general lack of confidence in the asset’s future, and that more traders are likely to sell than buy in the short term.

Moreover, Ethereum’s bearish liquidations have also jumped over the past two days. Data from CoinGlass shows that the number of short liquidations in key exchanges rose to the highest point since summer this week. This could be an indicator that traders are becoming increasingly bearish on Ethereum, and that the asset could be headed for more losses in the near future.

Overall, Ethereum’s recent price retreat and the increase in its put/call ratio could be a sign that the market is uncertain about the asset’s future. It remains to be seen whether the asset will continue to decline or if it will recover in the coming weeks.