• Ethereum saw a relief rally that pushed its price to a new three-week high.
• Chinese journalist Colin Wu reported that Ethereum whales are still bearish, evidenced by 26,000 put options with a strike price of $400 and an expiration date of June 30.
• The Shanghai upgrade and withdrawal capabilities for staked ETH could be a deterrent to further upside for the digital asset.
Ethereum recently experienced a relief rally that pushed its price to a new three-week high. The digital asset is now trading above $1,300 for the first time since mid-December 2021, and so far, has been able to hold its gains in the market. However, not everyone is betting on the continued growth of the cryptocurrency, which could end up being a deterrent to further upside for the digital asset.
Chinese journalist Colin Wu, popularly known as Wu Blockchain on Twitter posted a screenshot that showed that ethereum whales were still very bearish on the digital asset. For one, there were 26,000 put options for the cryptocurrency at a strike price of $400. This is a more than 200% decrease from the current price of the asset. The traders were placed on Saturday, December 7, according to the photo, showing a high conviction of an expected price drawdown in the coming months. These options were also set to expire on June 30, giving them a five-month runway to hit this price.
The bearish sentiment expressed by Ethereum whales is a result of the uncertainty surrounding the Shanghai upgrade and withdrawal capabilities for staked ETH. The Shanghai upgrade is a planned hard fork of the Ethereum network and is expected to bring a host of improvements, including improved scalability and transaction speeds, as well as the ability to use ETH as collateral for loans. However, there is still much uncertainty surrounding the exact date of the upgrade, and the potential disruption that it could cause. Similarly, the ability to withdraw ETH from staking has been a point of contention for some time now, as the uncertainty surrounding the withdrawal process could also be a deterrent to further upside for the digital asset.
Overall, Ethereum has seen a much-needed relief rally in the past few weeks, but the bearish sentiment of Ethereum whales suggests that further upside may be limited. It remains to be seen how the Shanghai upgrade and withdrawal capabilities for staked ETH will affect the price of Ethereum in the long run, but for now, the bearish sentiment of Ethereum whales is a reminder of the uncertainty surrounding the cryptocurrency market.