Investor Places $2 Million Bet on Ethereum Prices Surging by Month's End

What You Need to Know

A trader has invested over $2 million in Ethereum call options, predicting a price hike above $3,200 - $3,400 by the end of June.
The recent upgrade of Ethereum, known as Pectra, has improved scalability and the flexibility for validators, which has heightened investor confidence.
There is growing speculation about the approval of a spot ether ETF by U.S. regulators, potentially allowing for institutional investment in Ethereum.

Last month, CoinDesk reported that big money is increasingly optimistic about Ethereum (ETH) priced at $2,484.85, and price charts indicate a rally above $3,000. Recent evidence supports these assertions.

On Thursday, a trader expended above $2 million for 61,000 contracts of ether call options set to expire at the end of June at strike prices of $3,200 and $3,400, according to crypto options exchange Deribit. This indicates a forecast of over 30% price growth in a matter of weeks.

A call option allows the purchaser the right, but not the obligation, to buy an asset at a specified price by a later date. Thus, the trader indicates a bullish stance on the market by paying a premium for upside potential. The $2 million premium reflects the maximum loss the trader would incur if the market does not rise as anticipated.

Positive Forecasts for Ethereum

The positive trading activity resonates with renewed optimism among analysts regarding Ethereum’s pricing outlook. According to Youwei Yang, Ph.D., Chief Economist at BIT Mining, various factors—including protocol upgrades and institutional movements—have restored investor confidence in Ethereum’s prospects.

Ethereum’s recent Pectra upgrade aimed at enhancing scalability and user experience by increasing validator capacity and introducing new features, signals serious improvements in its core infrastructure, which may attract more developers and investors to the ecosystem.

Yang also mentioned SharpLink Gaming’s announcement to allocate $425 million into Ethereum as corporate treasury reserves, potentially starting a trend similar to the initial corporate adoption of Bitcoin as a treasury asset.

Lastly, there is speculation regarding the imminent approval of a spot ether ETF that includes staking mechanisms, which would provide institutions with exposure to both Ethereum’s price and staking yield—a feature currently absent in Bitcoin ETFs.