Ethereum’s native token, ether (ETH), is experiencing a robust upswing, spurring intense activity in the options market. In the last 24 hours, over $5 million has been allocated towards $5,000 strike call options set to expire on September 26. This has led traders to anticipate an ETH breakout above $5,000 by the end of this quarter.
Currently, ether is priced at $4,670, representing a remarkable 26% increase over the month, as per data from CoinDesk.
Traders are also engaging in calls at the $5,500 and $6,000 strike prices. Industry insights from the OTC tech platform Paradigm indicate that some market participants are targeting a $7,500 strike option that expires in December.
Analysts suggest there’s significant room for ETH’s price to grow, especially since it hasn’t reached new highs alongside Bitcoin or XRP in this cycle. Greg Magadini, director of derivatives at Amberdata, remarked, “With everyone sidelined from ETH and sentiment being completely in the dumps, there remains a lot of room for ETH to catch up. Immediate targets are $5,000 (to break into new all-time high territory) and around $7,200.”
According to insights from Santiment, the price rise is attributed to consistent selling by retail traders, suggesting that market prices often move contrary to retail expectations. The market intelligence platform highlighted periods of extreme optimism on June 16 and July 30, which previously led to price corrections. Traders now exhibit fear and doubt even as prices reach new heights.
With current prices just 4.4% off the all-time high of $4,861 set in November 2021, Ethereum’s potential breakout has caught considerable attention from traders and analysts alike.
