Investor anticipation over the debut of Spot Ethereum ETFs has stoked a bullish fervour for Ethereum in the cryptocurrency industry. This sentiment is mirrored in the recent expiration of more than 200,000 Ethereum options contracts and the prevailing put-call ratio. Investors worldwide have their eyes fixed on the potential trajectory of Ethereum, encouraged by the buzz around this revolutionizing cryptocurrency.
It’s worth noting that the lion’s share of these expired options were call options, meaning that buyers are strongly wagering on a surge in Ethereum’s price. Concurrently, the put-call ratio stands at a meagre 0.36, indicating that market participants, at present, are inclining towards purchasing more call options than put options.
For the uninitiated, options are contracts granting their buyers the right — but not the obligation — to purchase or dispose of an asset at a stipulated price on or prior to a specific deadline. In context, should the price of Ethereum surpass the strike price of these options upon expiration, buyers will likely seize the chance to acquire Ethereum at a bargain, subsequently propelling its price.
Cryptocurrency data reveals that market participants are speculating on a hike in Ethereum’s price, glossing over its recent stagnancy around a $3,500 mark. Most notably, it reveals that the recent expiration of 200,000 Ethereum options — with a collective worth of $710 million — was triggered by Ethereum’s inability to transcend the $3,600 price benchmark.
As of now, Ethereum is exchanging hands at $3,559. Despite the optimism driving the current proliferation of call options, Ethereum has not yet ascended to the expected pricing. Nonetheless, the sheer quantity of these call options paints a clear picture of the surging demand pressure enveloping Ethereum, anticipated to persist into the next month. Consequently, this could be an opportune moment for investors to strategize for next month’s rush of call options.
So, you might wonder: Just how high can Ethereum potentially climb?
Traders are experiencing a surge in their demand for Ethereum, a sure-fire sign that they foresee the cryptocurrency’s price escalating in the near future. Accumulation peaked mid-week, with holders scooping up more than 298,000 Ethereum within a 24-hour window. Moreover, on-chain data from Santiment uncovers that the top ten exchange wallets have experienced an 8.6% decline in their Ethereum holdings in just the past few days, indicating a shift as traders move their accumulations into private wallets. Worth noting is the substantial amount of Ethereum, approximately 336,000 worth $1.2 billion, withdrawn from Coinbase over Wednesday and Thursday, underscoring the uptick in withdrawals.
Despite this shift, Ethereum, commencing last week trading near $3,700, found it challenging to break past the $3,600 resistance over the weekend. Nevertheless, the steady increase in call options coupled with the expanding demand predict Ethereum will effortlessly surpass $3,600 within the coming week. Breaching the $3,600 and $3,700 limits would be decidedly bullish, potentially sparking a rally propelling Ethereum to earth-shattering new all-time peaks.
