Ethereum (ETH) has struggled to keep pace with top competitors like Bitcoin (BTC) and Solana (SOL), even after the approval of US spot ETFs in Q2. However, renewed interest in the cryptocurrency surged on Friday, September 13th, signaling a potential bullish trend.
Renewed Interest in ETH Options
According to QCP Capital, a Singapore-based crypto trading firm, there has been a significant spike in Ethereum options contracts, especially those targeting the $3,000 mark by the end of the year. In a recent note, the firm highlighted the growing optimism surrounding ETH’s price trajectory.
What Options Data Suggests for Ethereum
Options trading data often serves as a forward-looking indicator of market sentiment and future price expectations. The increase in ETH options activity and Open Interest (OI) suggests that traders are positioning themselves for a potential price rise in the fourth quarter.
Further supporting this outlook, the Chicago Mercantile Exchange (CME) reported a sharp increase in both trading volume and OI for Ethereum on September 13th. OI surged to $3.1 billion, and trading volume approached $700 million, highlighting growing institutional interest.
Spot Market Remains Muted
Despite the positive developments in the options market, Ethereum’s spot market saw limited movement. US ETH ETFs recorded a daily inflow of $1.5 million, but the weekly net flow remained negative, with $12.92 million withdrawn over the last week. This trend has yet to reverse, which may explain why broader investor confidence remains lukewarm.
Analysts Weigh In
David Duong, an analyst at Coinbase, attributed Ethereum’s lackluster price action to the current market structure. According to Duong, many investors are heavily invested in other altcoins, restricting the flow of capital into ETH. Additionally, a rise in exchange reserves—100,000 ETH tokens moved to exchanges ahead of the Federal Reserve’s rate decision on September 18th—could put short-term pressure on the asset’s price.
Current Price Performance
At the time of writing, Ethereum is valued at around $2,400, marking a 5% gain over the past week. Whether it can maintain this momentum and reach the coveted $3,000 mark by December remains to be seen, but the recent surge in options activity suggests that investors are increasingly optimistic.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before investing in any cryptocurrency.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your research before investing in any cryptocurrency.
