Increased demand for Ethereum put options indicates that traders are worried about a potential decrease in ETH price, despite it currently trading well above the $4,000 resistance level. With the highly anticipated Dencun update approaching, the options market for ETH is showing conflicting signals, causing concern among traders. QCP Capital market analysts have noted that ETH’s risk reversals have become negative for short-term expiries, showing a rise in interest in put options. This change indicates an increasing understanding of the possibility of a decrease in ETH prices, with investors potentially protecting themselves from risks in other cryptocurrencies. QCP Capital believes that even with caution, any decrease in price will probably be countered with strong buying interest. A risk reversal indicates the gap in perceived risk between call and put options. A decrease in risk reversal suggests the market anticipates a greater likelihood of the spot price decreasing. QCP Capital also points out a minor decrease in ETH spot-forward spreads, contrasting with the wider spreads observed in Bitcoin markets. This disparity suggests that a significant drop in Ethereum’s current prices could result in narrower forward spreads due to the closure of leveraged long positions. Nevertheless, despite this possibility, the second largest cryptocurrency in the world has maintained its position above the $4,000 mark and is ready for a potential increase toward a new record peak of up to $5,000. Currently, Ethereum is priced at $4,043 with a market capitalization of $485 billion. Additionally, Ethereum’s upcoming Dencun update scheduled for March 13th represents a significant advancement in the network’s structure, offering lower expenses especially in Layer 2 networks.