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Derivatives Suggest a ‘Sell-the-News’ End to the Ethereum Rally

  • Upgrade is moving blockchain to less energy-intensive system
  • September call options ‘dwarf’ put options, Glassnode says

Ether is surging in anticipation of a groundbreaking software upgrade to its blockchain. Sophisticated traders are positioning for the rally to continue until that happens -- and then for the cryptocurrency to plummet afterward.  

Speculators in derivatives markets are scooping up call options to bet on an Ether advance into September, when the upgrade is supposed to happen. Yet futures and options are suggesting they’re expecting the price to drop after the event in what analysts at Glassnode say could be a “sell-the-news”-type of situation.