• The ratio between the open interest of Ether (ETH) put and call options jumped to its highest level since last May at 0.47.
• This could suggest a build-up of bearish bets in the market ahead of an upcoming series of major upgrades to the Ethereum network on the 12th of April.
• The upgrades will enable the withdrawal of staked Ether tokens from the staking smart contract, which may cause a sell-off in ETH prices.

Ethereum Put/Call Ratio Jumps

The ratio between open interest of Ether (ETH) put and call options has jumped to its highest level since last May at 0.47 on Tuesday, according to data presented by crypto data analytics and news firm The Block. This suggests that bearish bets are building up ahead of an upcoming series of major upgrades to the Ethereum network on the 12th of April.

Bearish Bets Building Up Ahead Of Shappella Upgrade?

A ratio in open interest for put and call options below 1 means that investors favor owning call options (bets on the price rising) over put options (bets on the price dropping). While this ratio is still well below 1, it could indicate that bullish bets have been pulled back sharply in recent days, as more traders become interested in shorting Ether in wake of recent price gains.

Staked ETH Withdrawals Are Coming – Will ETH Dump?

On the 12thof April, Ethereum will undergo a series of upgrades that will enable users to withdraw their staked Ether tokens from the staking smart contract. This might trigger a sell-off in ETH prices if investors decide to liquidate their holdings after withdrawing them from staking contracts.

Open Interest In Ether Options Dropping

Open interest in Ether options was recently as high as $7.5 billion but has now dropped down just under $5 billion due to option expiries at end-of-quarter markdowns. It remains to be seen whether investors will rebuild their option exposure over coming quarter, and how this might push down or increase current Put/Call ratios further downstream..

Conclusion

The rise in Put/Call ratios for Ethereum indicates that bearish bets are building up ahead of upcoming upgrades which will enable users to withdraw their staked Ether tokens from staking contracts, potentially leading to a sell-off or dump if large numbers choose to liquidate their holdings after withdrawing them from these contracts