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Is Ethereum Set For A Major Rally? Options Traders Bet Big On $3,600+ Targets For June

Ethereum (ETH) options for June show a marked interest in higher strike prices, focusing on levels exceeding $3,600.

Data from Deribit reveals a concentrated bet among traders on calls surpassing this price, indicating a bullish sentiment toward Ethereum’s near-term trajectory. The most favored strike price among these optimistic bets is an ambitious $6,500.

Options Market Bullish On Ethereum 

Notably, options are contracts that give traders the right, but not the obligation, to buy (in the case of calls) or sell (in the case of puts) the underlying asset at a specified strike price by the expiry date.

A call option is typically purchased by traders who believe the asset will increase in price, allowing them to buy at a lower rate and potentially sell at a higher market price. Conversely, put options are favored by those anticipating a decline in the asset’s price, aiming to sell at the current rate and repurchase at a lower value.

Currently, the Ethereum options market is tilting heavily towards calls, with the aggregate open interest—representing the total number of outstanding contract options—showing a preference for higher strike prices.

This concentration of calls, primarily above the $3,600 mark, suggests that a significant market segment is positioning for Ethereum to ascend to higher levels by the end of June.

Ethereum Open Interest By Expiration.

According to Deribit data, roughly 622,636 Ethereum call contracts are set to expire by June’s end, encapsulating a notional value above $1.8 billion. Such substantial positioning underscores the market’s confidence in Ethereum’s potential uplift.

Data further shows that the most substantial open interest is clustered around the $6,500 strike price, with a notional value of $193 million.

Ethereum Open Interest By Strike Price.

This concentration reflects trader optimism and supports Ethereum’s market price, especially if these options are exercised as the asset price approaches or surpasses these strike levels.

Despite the optimism embedded in these options, Ethereum is currently navigating a slight downturn. It has dropped 5.4% over the past week and 2.2% in the last 24 hours, positioning it below $2,900. This decline places even more focus on upcoming market catalysts that could significantly sway ETH’s price.

Ethereum (ETH) price is moving sideways on the 4-hour chart. Source: ETH/USDT on TradingView.com

Regulatory Decisions And Technical Indicators: A Dual Influence on ETH’s Path

One significant upcoming event is the US Securities and Exchange Commission’s (SEC) decision on several applications for Ethereum-based Exchange-Traded Funds (ETFs), which is due by May 25th.

This decision is pivotal as approval could usher in a wave of institutional investments into Ethereum, potentially catapulting its price. Conversely, rejection could dampen the bullish sentiment and lead to further pullbacks.

From a technical analysis standpoint, signs are pointing to a possible rebound. The “Bullish Cypher Pattern,” identified by the analyst Titan Of Crypto, suggests that Ethereum could be at a turning point. Currently, Ethereum is at the 38.2% Fibonacci retracement level, a key support zone in many bull markets.

This level has historically acted as a launchpad for upward price movements, hinting that Ethereum could be gearing up for a significant rise.

Featured image from Unsplash, Chart from TradingView

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Ethereum’s Path To Recovery: Analyst Highlights 3 Key Factors Pointing To A Price Boom

Michael van de Poppe, a prominent crypto analyst, recently outlined three key factors that could herald a bullish phase for Ethereum, the second-largest crypto by market capitalization. One crucial factor he identifies is Bitcoin’s current behavior.

The analyst pointed out that as the market leader, Bitcoin’s recent signs of bottoming out tend to precede altcoin rallies, hinting at a potential upswing for Ethereum. Moreover, Van de Poppe highlights the growing anticipation surrounding spot Ethereum exchange-traded funds (ETFs).

According to Van de Poppe, the increasing buzz about these spot ETFs is a significant catalyst that could drive Ethereum’s value over the coming weeks.

Additionally, Ethereum is on the cusp of rolling out critical network upgrades. These updates, aimed at reducing transaction costs by up to 90%, are expected to improve the network’s efficiency and scalability significantly.

Latest Update On Ethereum Deacon Upgrade

Regarding updates, Ethereum’s development team is making strides with the upcoming Dencun upgrade, a significant “hard fork” that aims to enhance the blockchain’s efficiency.

Tim Beiko, a core Ethereum developer, updated the community earlier today on the progress. Dencun, which incorporates “proto-danksharding,” is set to reduce transaction costs on layer 2 solutions, making Ethereum more accessible and affordable for users.

According to the developer, the upgrade is scheduled to activate on the Sepolia testnet on January 30 and the Holesky testnet on February 7, with mainnet implementation following if these tests succeed.

Brighter Future Ahead

Despite these positive developments, Ethereum’s market performance mirrors the overall bearish sentiment in the crypto market, led by Bitcoin. ETH has seen a 13.7% decline in the past week, currently trading at $2,216.

Ethereum (ETH) price chart on TradingView.com

However, analysts like Van de Poppe urge caution, particularly regarding the impact of the Bitcoin spot ETF. While there may be short-term selling pressure, Van de Poppe remains optimistic about the long-term prospects.

The analyst suggests that the influx of new capital from diverse market participants could propel Bitcoin, and by extension, Ethereum, to new heights.

Featured image from Unsplash, Chart from TradingView

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Ethereum Hovers Above $1,600, What’s The Next Move?

The general crypto market has increased in market cap in 24 hours, up by 2.89%. Ethereum (ETH), the second-largest crypto project, is also trading in the green in the same time period.

Despite being so early in 2023, ETH has recorded significant price gains in the crypto market. Ethereum is still off its all-time high value, but its price shows resilience with the current upsurge. 

What Is Driving Ethereum’s Rally?

The recent gains recorded could be attributed to the notable projects hosted on the Ethereum network. The Ethereum blockchain remains the most popular blockchain for NFTs. The blockchain is also the pioneer of smart contracts, which is now the widely adopted technology in crypto. These smart contracts enable crypto users to interact seamlessly and securely on the blockchain.

Ethereum Name Service (ENS) is one of the innovations on the Ethereum network. ENS is a distributed naming system that helps to shorten a cryptocurrency address by assigning readable names to eliminate confusion.

Also, ETH is the second-largest cryptocurrency project by market cap and the first altcoin. Its innovative proof-of-stake system is more energy efficient and attracts increased participation from the crypto community. The network is renowned as a developer’s hub with numerous Web3 and Metaverse projects. 

ETHUSD

What Next For Ethereum As It Crosses $1,600?

ETH recovered from the general market pullback yesterday, trading at $1,605, an increase of 3.81%. The candlesticks on the chart show that ETH has been in an uptrend in the past few days. However, it is currently in a sideways trend and is poised to resume its ascent on the price charts. ETH’s price correlates to bitcoin’s price, just like most cryptocurrencies, increasing whenever BTC is bullish.

ETH is now trading above its 50-day and 200-day Simple Moving Average (SMA). This is a bullish signal for the asset, so there could be an increase in ETH’s price in the coming days.

The support levels are $1,452.32, $1,495.32, and $1,560.14, and its resistance levels are $1,667.95, $1,710.67, and $1,775.77. Ethereum has sufficient momentum in the market today and will likely surpass the closest resistance level of $1,667.95.

Related Reading: CryptoQuant’s Bitcoin PnL Index Forms Bullish Crossover

The Relative Strength Index (RSI) is currently at 67.12, close to the overbought region of 70. However, it shows signs of a possible retracement, implying that a reversal in the coming days is still possible. The Moving Average Convergence/Divergence (MACD) is above its signal line but showing convergence. It also reflects the possibility of a downtrend occurring in the short term.

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Ethereum And Crypto Market Might See Higher Price Rallies This Month, Says Analyst

As September 13th, the date of the much anticipated Ethereum mainnet merge approaches, the crypto community believes it will determine the fate of both the Ethereum blockchain and the wider crypto ecosystem. However, there is another event set to take place on the same day that may impact the market, the release of the US CPI and inflation data.

Crypto Analyst: The Merge Will Not Impact The Fate of ETH And The Wider Crypto Market

The reputable crypto analyst, Cred, has evaluated the hype surrounding the upcoming Ethereum Merge event. He concluded that it would have no bearing on the crypto market and ETH price, whatever happens. 

Related Reading: Why Ethereum Price Longs Might Profit Ahead Of “The Merge”

The Merge is set to go live on the 13th of September after several test nets have successfully launched. It would finally ease the Ethereum Blockchain off its previous energy-intensive PoW consensus mechanism and onto the PoS mechanism with 99.95% less energy consumption.

The merge has already caused the price of ETH to spike over 40% from around $1000 to $1500 in July. Then it went from $1600 to $2000 mid-August when the final Goerli testnet ran successfully. Supporters of the Merge have proposed that when it completely rolls out, it will cause both ETH and the general crypto market to spike.

Ethereum’s price is currently trading above $1,600. | Source: ETHUSD price chart from TradingView.com
The Real Game Changer: CPI And Inflation Data Publication

However, according to Cred, the actual event that would make the difference, happening the same day, is the release of the latest inflation data. 

The US Consumer Price Index (CPI) publication and inflation data are also going live on the 13th of September. If the Fed softens its stance and goes dovish, things will look up for ETH and crypto in general. If the Federal Reserve retains its hawkish outlook or stays neutral, the crypto winter might tarry longer. 

Cred: The Market Will Credit The Wrong Catalyst

However, the analyst predicts that the crypto community will likely credit the Ethereum Merge for whatever happens rather than examining macroeconomic data. That’s because the last time that ETH rallied was due to the “big counter-trend rally in stocks” caused by “macro” that bounced into Ethereum. Cred believes the same will happen in the merge coinciding with the inflation data print.

Related Reading: Why Extreme Fear Is Back In Crypto In A Big Way

According to the crypto analyst,

“if ETH dumps, as a result, everyone will say, ‘Oh look well the merge is priced in. It was obvious.’ If ETH doesn’t dump; as a result, people will say, ‘The merge wasn’t priced in, and it’s just the start.’”

Either way, Cred believes it is a false causality. 

Per CoinMarketCap, Ethereum is currently trading at around $1,500.

Featured image from Pixabay and chart from TradingView.com

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Crypto Research Analyst Puts Ethereum At $9,000 In Six Months

Ethereum has had a good year in 2021, although the digital asset is looking to close out the year on a less than a bullish note. Nevertheless, investor sentiment around the altcoin continues to be on the positive side as most expect the cryptocurrency to do well in the coming years. One of those is a crypto research analyst at Fundstrat, Armando Aguilar, who believes that Ethereum will double in price next year.

Ethereum Heading For A Big Year

In a report on Business Insider, Aguilar noted that the year has been a choppy one for the cryptocurrency market. There were several bull rallies and crashes that rocked the market for the year, and the analyst expects to see this choppiness persist into next year. However, next year does not look to be all bad from his perspective.

Related Reading | Jack Dorsey Disses Ethereum, Web3 In Twitter Rampage

Aguilar shared with Insider that he was expecting more adoption from institutional investors into bitcoin which would lead to what he sees to be a successful year. For Ethereum, this has some important implications as the coin has now lost its footing above $4,000. Aguilar explained that he sees the price of Ethereum doing very well going into the year 2022.

ETH begins recovery towards $4k | Source: ETHUSD on TradingView.com

He puts the price of the second-largest cryptocurrency by market cap at $9,000 by the second quarter of 2022. This will be propelled by the growth of decentralized finance (DeFi), the metaverse, and NFTs.

Even with the explosive growth of DeFi in 2021, Aguilar sees this growth going into 2022 as institutional investors take more stake in the market. As this demand grows, Atheneum’s value will grow with it, putting it at $9,000 in the first half of 2022. “I believe that DeFi will play a major role for institutional capital next year,” said Aguilar. “As institutional and retail demand drove DeFi into new heights, the trends will continue to spill into 2022.”

Bitcoin Clocking Six Figures

For Ethereum to hit Aguilar’s prediction, bitcoin would also have to see explosive growth in 2022. This is why the analyst also expects bitcoin to finally hit six figures in the same time frame. He puts this up to more adoption from institutional investors as they turn to bitcoin to combat rising inflation rates. This will see the price of bitcoin finally surge towards the coveted $100,000 price.

Related Reading | By The Numbers: How Ethereum 2.0 One-Year Stats Stack Up

Additionally, institutional investors are already getting exposure to the digital asset through the various ETFs that have been approved by the SEC. Aguilar notes that funds like Valkyrie are tracking US public companies that are exposed to bitcoin through the Balance Sheet Opportunities ETF.

Just like Ethereum, bitcoin looks to be heading towards a year-end close below expectations. The digital asset continues to struggle at $48,000 going into the holidays, suggesting that a close below $50,000 for the year is imminent.

Featured image from BankrateAn, chart from TradingView.com