Ethereum back in spotlight as crypto traders show interest in Ether
- Crypto options market shows a sudden revival of interest in Ether.
- Over 20,000 contracts were bought targeting the $3,000 level by December 27,2024.
- Ether hovers around $2,400 on Saturday, down nearly 1% on the day.
Ethereum has traded in a range between $2,000 and $4,000 level throughout 2024. The second largest altcoin is yet to observe gains in response to institutional demand from the Spot Ethereum ETF.
The key market mover for the altcoin is currently options market activity of traders.
Ethereum options traders are bullish on a rally
Ethereum options traders likely anticipate a rally to the $3,000 level, a key psychological barrier for the altcoin, by December 2024.
Data from QCP Capital’s recent broadcast shows that over 20,000 contracts that target the $3,000 level were bought by options traders.
The contracts expire on December 27, 2024, meaning traders expect the altcoin to hit the $3,000 target by the end of the year.
The news of Coinbase’s cbBTC is another catalyst that could drive gains in the altcoin.
cbBTC is onchain.
— Coinbase ️ (@coinbase) September 12, 2024
cbBTC is an ERC20 token that is backed 1:1 by Bitcoin (BTC) held by Coinbase.
This means millions of BTC holders can now securely access DeFi apps on @base and Ethereum ecosystems—with more chains coming soon.
Here’s what you need to know ↓ pic.twitter.com/nF8mF3JGms
Sudden revival in crypto traders’ interest in Ethereum and a spike in the chain’s utility with cbBTC launch pushes Ethereum back in the spotlight and supports a bullish thesis.
Ethereum trades at $2,418 at the time of writing.
Crypto ETF FAQs
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Bitcoin spot ETF has been approved outside the US, but the SEC is yet to approve one in the country. After BlackRock filed for a Bitcoin spot ETF on June 15, the interest surrounding crypto ETFs has been renewed. Grayscale – whose application for a Bitcoin spot ETF was initially rejected by the SEC – got a victory in court, forcing the US regulator to review its proposal again. The SEC’s loss in this lawsuit has fueled hopes that a Bitcoin spot ETF might be approved by the end of the year.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
