ETH Bear Call Spreads for a Sideways-to-Bearish Outlook

Summary

This note presents a defined-risk bear call spread for traders expecting ETH to remain sideways or decline through the stated May expiration. The example sells a 3,050 call and buys a 3,100 call, collecting a net credit of $17 per ETH. The position reaches its maximum profit if ETH finishes below the short strike; the higher-strike long call limits losses if ETH rises. The note gives a maximum loss of $33 per ETH and describes how to place the combined trade through Deribit’s block trading interface.

The rationale combines a chart-based downtrend, lower highs, and proximity to support with uncertainty about US ETF approval and comparatively modest inflows into Hong Kong ETH ETFs. These observations motivate the bearish-to-neutral thesis but do not establish that the price will fall or stay below the target. The example is tied to a specific market view and expiration, and its payoff depends on execution prices and the settlement price. The article cautions that it should not be the sole basis for a trading decision.

Key ideas

• A bear call spread sells a call and buys another call at a higher strike with the same expiration.
• The example collects a net credit of $17 per ETH and has a stated maximum loss of $33 per ETH.
• The long call caps the spread’s losses if ETH rises above the short strike.
• The bearish thesis rests on chart weakness, nearby support, and uncertainty about ETF approval.
• The strategy is intended for a sideways-to-downward outlook through the selected expiration.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.