According to COINOTAG News, on February 18th, QCP’s daily analysis highlighted significant distortions in the options market, particularly concerning ETH, as it approaches the March expiration date. This trend appears to be a strategic response to the upcoming Ethereum Pectra upgrade, currently in its testing phase and anticipated to launch in early April. Historically, Ethereum upgrades have exhibited a “buy the rumor, sell the news” phenomenon. For instance, after the Merge in September 2022, ETH saw a remarkable rebound of over 100% from June lows, only to decline post-event. Conversely, the April 2023 Shanghai upgrade initially faced bearish sentiment due to supply anxiety but eventually led to a 30% increase as selling pressure diminished.
As traders brace for potential volatility linked to Ethereum’s narrative, options trends suggest a bullish inclination starting March 28th. Meanwhile, the broader crypto market continues to tread cautiously amid the residual effects of Trump tariffs. A notable counterbalance to this is the ongoing weakness in altcoins, highlighted by the declines in LIBRA and SOL, alongside ETH retracing to pre-election levels. Simultaneously, Bitcoin’s market dominance is approaching historic peaks, indicating a shift in market leadership. Sustainable recovery for altcoins may necessitate substantial developments in real-world applications rather than relying solely on speculative investments.