Ethereum options traders are more optimistic than their Bitcoin counterparts

Ethereum options traders are more optimistic than their Bitcoin counterparts, market data shows.

Despite a broadly cautious stance from investors, the divergence suggests that traders see less immediate downside risk for the second-largest cryptocurrency by market cap than for Bitcoin.

For longer-term options, Ethereum’s 90-day skew is at -1.7%, which is “notably more optimistic” than Bitcoin’s -4%, said Sean Dawson, head of research at the on-chain options platform Derive. “In other words, traders are more eager to buy protection for Bitcoin than for Ethereum.”

The negative skew for both assets shows a continued appetite for protective put options, greater than for bullish calls. However, it’s the intensity of this pessimism where they diverge.

Despite a recent recovery driven by the Federal Reserve’s looser fiscal tone, the market is “a far cry from the optimistic sentiment we saw at the start of the fourth quarter,” Dawson said. He advises caution in the coming weeks.

Drop in Pessimistic Sentiment

Signs point to a mild thawing of pessimism specifically for Ethereum.

“We’re seeing signs of reduced bearish sentiment in the Ethereum options market, although derivative traders are still far from pricing in a full ‘Christmas rally,’” said Thahbib Rahman, research analyst at crypto platform Block Scholes.

The put-call skew for short-term Ethereum contracts briefly turned positive recently, marking the most optimistic positioning since the end of October, Rahman noted. Additionally, BlockScholes’ proprietary Risk-Appetite Index for Ethereum appears to be forming a bottom, a pattern that historically precedes sentiment reversals.

Rahman drew parallels to the market structure of May 2025, which preceded a significant rally.

“At that time, the rally started driven by a more positive macro environment, the Pectra upgrade was launched, and in the following weeks, spot Ethereum ETFs had their best streak of inflows,” Rahman said.

Similar catalysts are at play now, he noted: markets are pricing in a possible Fed rate cut in December, Ethereum’s Fusaka upgrade went live to improve layer-2 network efficiency, and entities like BitMine made large ETH purchases. The missing component, according to him, is a sustained wave of inflows into spot Ethereum ETFs, needed to fuel a more decisive bullish move.

The technical positioning observed in options market data reinforces a market that, while not expecting a major rally, is cautiously reducing the likelihood of a specific Ethereum downturn.