Major cryptocurrency holders expect Ethereum to fall to $ 400

According to Chinese crypto journalist and blogger Colin Wu, major cryptocurrency holders expect Ethereum to fall by 33%, as revealed by the disclosure of put options. Investors have placed orders for put options for 26,000 Ethereum, the strike price for which is set at $ 400, and the end date is June 30, 2023.

I think they believe strong selling pressure after unlock ETH from ETH 2.0

— Alerto 🛸 |(💙,🧡) (@cryptuj_alert) January 7, 2023

As you know, put options provide an opportunity to sell a digital asset at a predetermined price regardless of its market value before the contract expires. Cryptocurrency holders expecting tokens to fall place orders for put options in order to sell their cryptocurrency at a favorable price in the future and protect their investments. Based on the data from Wu Blockchain, investors are predicting that ETH will collapse to $ 400, which is the strike price set for 26,000 tokens.

What is an option? An option is a contract to buy or sell an underlying asset within a specified period at a predetermined price. With its help, an investor can hedge against the risk that his digital assets will fall in value and make a profit regardless of the market situation.

Over the past 7 days, the value of Vitalik Buterin 's cryptocurrency ETH $2,999.13 Ethereum 0.61% Market capitalization $360.5 billion VOL. 24 hours $1.51 billion has increased by 5.7%, so there is no reason for investors to worry. However, not only large cryptocurrency holders expect the ethereum to fall, as analyst Nicholas Marten shared his negative forecasts in late December. According to him, the Ethereum network has problems that could cause ETH to lose up to 75% of its value. The reason for the likely collapse of Ethereum is the secrets that the team of the main altcoin hides from users.

Nicholas Marten is convinced that liquidations in DeFi protocols on Ethereum will trigger a massive sell-off if the ETH price falls to a certain level. Thus, if the token moves from $ 750 to $ 550, a cascading effect of pressure from sellers will begin, the expert believes.