Ethereum desks are bracing for a major derivatives event: roughly $6 billion in ETH options are set to expire this Friday, Dec. 26, putting the $3,000 area — and especially the $3,100 mark — squarely in traders’ crosshairs.
What’s happening
- Data from derivatives tracker Laevitas shows $6 billion of ETH options expire on Friday, with calls outnumbering puts by more than 2.2x. Despite the call-heavy structure, bears retain the edge unless ETH can break cleanly above ~$3,100.
- ETH is trading just above $2,900 as the expiry approaches. Many bullish positions placed earlier in the year were undermined by the sharp, volatile drawdown in November, leaving a sizable portion of call OI vulnerable to expiring worthless if the market doesn’t recover.
- The $3,100 level is being tagged as the “max pain” pivot — the price where the greatest number of options would expire worthless. A close below that zone could hand momentum to the downside; a decisive rally above it could flip the market quickly.
- On Deribit alone, about $3.8 billion in ETH options are due to expire. The expiry day is even more loaded because over $23.6 billion in Bitcoin options also mature on Friday, a combo that could amplify cross-market volatility.
Why it matters
Options expiries often force hedging flows from market makers and can compress price action around key strikes (the so-called pinning effect). With a large concentration of open interest around $3,000–$3,100, the settlement could steer near-term supply/demand dynamics and investor sentiment heading into 2026.
Analyst view and short-term outlook
Crypto analyst Ted Pillows warns ETH is in a “no-trading zone” for now, but expects volatility if ETH either reclaims $3,000 or slides back into the $2,700–$2,800 range. In short: traders should be ready for a potentially sharp move once the options clear.
What to watch
- Whether ETH holds above $3,000 or breaks toward $2,700–$2,800
- A clean break and close above $3,100 (bullish momentum) or a rejection below it (bearish follow-through)
- Cross-asset volatility from simultaneous Bitcoin options expiry
With billions in open contracts set to settle, Friday’s expiry could be the spark that defines Ethereum’s next directional leg.
Read more AI-generated news on: undefined/news
