Ether has failed to maintain prices above $3,400 for more than 40 days, prompting concerns that bearish pressure may persist.
The extended weakness has left traders increasingly cautious about the near-term outlook.
ETH has faced repeated rejections at higher resistance levels, reinforcing the perception that sellers remain in control.
Options Expiry Adds Pressure to Market
Approximately $6 billion in Ether options are set to expire on Friday.
Call options currently outnumber put options by a factor of 2.2.
Despite this imbalance, bears maintain the advantage unless ETH breaks above $3,100.
Many bullish traders had expected Ether to trade at $4,000 or higher by year-end.
Those expectations were undermined by a sharp 28% price drop in November.
Ether’s price at 8:00 am UTC on Friday will be a critical reference point for determining which side benefits most from the expiry.
Bullish Bets Clustered at Higher Levels
Most of the $4.1 billion in call options are likely to expire worthless.
A large portion of bullish bets were concentrated between $3,500 and $5,000.
Less than 15% of call options were positioned at $3,000 or lower.
Even when excluding extremely optimistic strikes above $5,000, fewer than 25% of call options were placed below $3,200.
Some traders routinely sell covered calls at much higher strike prices with little expectation of those levels being reached.
Bears Still Hold Tactical Edge
Bearish positioning has also been aggressive, with many bets clustered between $2,200 and $2,900.
If Ether trades above $2,950 on Friday, more than 60% of put options would expire worthless.
However, bearish strategies remain better positioned as long as ETH stays below $3,200.
This keeps downward pressure firmly in place unless bulls can force a late move higher.
Macro Concerns Weigh on Sentiment
Investor sentiment was further shaken by reports surrounding weaknesses in the US semiconductor sector.
News that Intel struggled to advance its domestic chip manufacturing efforts contributed to broader risk aversion.
According to reports, Nvidia halted production tests tied to Intel’s manufacturing processes.
These developments reduced optimism around the economic impact of artificial intelligence in the US.
$3,100 Seen as Pivotal Level
Options data points to $3,100 as a crucial threshold for Ether bulls.
Below $2,900, options outcomes strongly favor put holders.
Between $3,101 and $3,200, results become more balanced.
Prices above $3,200 would begin to tilt the outcome in favor of call options.
A push toward $3,100 could help stabilize sentiment and distance Ether from its December lows near $2,775.
