Trader Buys 6,000 ETH Put Options at $4,300, Faces Probable Loss
According to on-chain data from @ai_9684xtpa, a trader purchased 6,000 ETH put options with a strike price of $4,250 expiring on September 6, spending roughly $174,000, as Ethereum’s price dipped below $4,300 in the early hours. With less than 30 minutes to expiration and ETH still trading around $4,300, the ETH put options now face a high probability of expiring worthless. This move highlights growing interest in options trading and downside hedging amid current market volatility. Traders should monitor option expiry events and implied volatility shifts for potential trading opportunities.
Bearish
Purchasing large volumes of ETH put options is generally interpreted as a bearish signal because it reflects investor expectations of price decline or increased downside protection. In this instance, the trader’s acquisition of 6,000 ETH put contracts at a strike of $4,250 highlights growing caution around Ethereum’s near-term performance as its price hovers at $4,300. Historically, significant put buying—such as the notable surge in ETH downside hedges in June—preceded short-term price corrections, as traders positioned for volatility. Although the options are about to expire, the heightened demand for puts may increase implied volatility and exert downward pressure on spot prices through hedging flows. Therefore, this activity suggests a bearish market sentiment. Short-term traders might brace for potential declines or increased volatility, while long-term investors should monitor option market indicators and funding rates for signs of sustained selling pressure.