Ethereum Primed for Potential $5K Surge Driven by Bullish Bets on Options Market
CryptoNewsTerminal Staff27 May, 2024
Ethereum Primed for Potential $5K Surge Driven by Bullish Bets on Options Market
Traders are placing bullish bets on Ethereum (ETH) as the path clears for a possible spot ETF approval by the SEC. Last week's significant price surge of 26% marked the highest weekly gain since the 2021 crypto bull market. Data from Deribit indicates that the options market is heavily invested in ETH rising above $5,000. The T3 Ether Volatility Index reflects a higher expected volatility for ETH compared to BTC, suggesting that traders anticipate increased price fluctuations for Ethereum. Despite the optimistic outlook, CME ETH futures open interest remains lower than BTC, indicating a lower demand for ETH. Some analysts view the CME ETH futures as a precursor to a spot ETF, but low institutional interest in the ETF may limit initial inflows.
