🪙💡Update Ethereum today: Today, options for ETH worth 3.7 billion USD are expiring. This could have a significant impact on the market. Here's what you should pay attention to:

1. Impact of Options Expiration
When options expire, this can lead to increased volume and volatility as traders close, adjust, or hedge their positions. The impact depends on where the max pain price is and how market participants are positioned.

Max Pain Price: What is it?
The Max Pain price is the price at which the majority of options (calls and puts) expire worthless. It is the point at which the options sellers (market makers) achieve the greatest profit.
Max pain price is 3000 USD!
Traders with options that are close to the current market price may try to move the price in that direction to protect their positions or maximize profits.

What does this mean for ETH?
For ETH, there could be large price fluctuations in the short term as both buyers and sellers try to steer the course in the direction most advantageous to them.
The market could take a clear direction after the expiration of the options, as the pressure from hedging activities decreases.
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2. Possible Scenarios
Bullish scenario (price rises):
If the majority of expiring options are put options (short bets), buyers may try to move the price closer to call options to profit from them.
A price above the Max Pain price could generate additional buying momentum through a short squeeze.

Bearish scenario (price falls):
If the majority of expiring options are call options (long bets) and the price remains below the Max Pain price, sellers may try to push the price further down.
A strong sell-off could be triggered if traders hedge or close their positions.
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4. Expected Impact

Short-term:
Volatility is rising: The market could exhibit high volatility in the hours before and after expiration as positions are closed and new ones opened.

Unclear direction: The direction strongly depends on where the current price is compared to the Max Pain price and how major market participants are positioning themselves.

Medium-term:
Once the options have expired, the pressure from hedging decreases. The market could stabilize and take a clearer direction.
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5. What should you do?

🚨Beware of short-term trades:
The market could fluctuate strongly in both directions. If you don't see any clear entry signals, it's better to wait.

🚨Watch the Max Pain price:

Check where the Max Pain price for BTC and ETH is. This could provide clues as to which direction the price could be pushed in the short term.

🚨Adjust stop-loss:

Monitor current ETH stop-loss closely or temporarily widen it to withstand unexpected fluctuations.

🚨 Exploit volatility (if desired):
If you are actively trading, there may be good opportunities after the expiration of options, as the market may take a clear direction.

Conclusion
The expiration of the options is likely to make the market volatile in the short term. Watch the Max Pain price, volumes, and possible price reactions to make informed decisions. For ETH, the price could struggle in the short term around the support zone of 3,300-3,240 USDT before a clear direction emerges.

This is not financial advice.
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