- Ethereum options’ open interest hit an all-time high on CME, suggesting interest from traditional investors.
- This move comes ahead of a potential approval of futures ETH ETF on October 2.
- The whale transaction metric also shows a spike on the recent dip, suggesting buying activity.
- Supplementing the bullish nature is the accumulation from holders with 10,000 to 100,000 ETH.
Ethereum (ETH) price is likely going to witness a massive spike in volatility soon due to the circumstances surrounding the approval of the token’s futures Exchange-Traded Fund (ETF). According to Twitter users, the ETF is likely going to be approved on October 2. So, a closer look at on-chain metrics reveal that whales and traditional investors are positioning themselves ahead of the potential ETF approval.
Read more: First Ethereum futures ETF expecting approval by October 2
Ethereum futures ETF approval and volatility spike
The chart attached below adds proof that investors positioning themselves ahead of the Ethereum futures ETF approval on October 2 is the open interest of ETH options on the CME exchange. The open interest has hit $352 million, which is and all-time high.
While this chart does not provide a directional bias, looking at other on-chain metrics does show signs that these investors are likely expeceting a bullish outcome.
ETH CME OI
Also read: SEC could approve multiple Ether ETFs soon while delaying Bitcoin spot ETFs
Santiment’s Supply Distribution by on balance of addresses shows that Ether whales holding between 100,000 to 1,000,000 ETH has grown from 19.1 million on August 19 to 20.19 million as of September 24. In total, these whales added 1.09 million ETH to their holdings.
This moves comes after Ethereum (ETH) price dropped nearly 15% between August 15 and 20, suggesting that it was a buy-the-dip accumulation.
 [14.30.54, 24 Sep, 2023]-638311529602349631.png)
ETH supply distribution by balance of addresses
Further supporting that these holders are preparing for an approval of Ether futures ETF is the whale transaction metric. This index tracks transactions worth $100,000 or more and serves as a proxy of investor sentiment. A spike in this on-chain metric after a dip, hints at accumulation and the opposite often indicates that these holders are looking to sell.
On September 12, when Ethereum (ETH) price dropped to $1,551, this index saw a major uptick, suggesting nothing but accumulation.
 [14.31.20, 24 Sep, 2023]-638311529820065968.png)
ETH whale transaction
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
XRP sustains bullish momentum despite SEC's appeal against Ripple
XRP continued trading above the $3 mark on Thursday as investors stepped on the accumulation gear following rumors of Donald Trump considering its addition to a US digital asset reserve.
Upbit crypto exchange faces suspension in South Korea over alleged KYC violations
Cryptocurrencies aggregate market capitalization consolidated at $3.5 trillion on Thursday rising by $152 billion within the last 24 hours. Altcoin markets rose by 9%.
Binance bulls target $750 as Trump drives crypto trading volumes to a record high
BNB price crossed the $715 on Thursday as traders continued to take strategic speculative positions ahead of the US Presidential inauguration slated for January 20.
Ethereum Price Forecast: Staking could spark ETH rally in 2025 as PostFinance launch stirs bullish sentiment
Ethereum experienced a 3% decline on Thursday despite growing excitement over the launch of ETH staking services by PostFinance AG. Investors are optimistic that this development may lead to the approval of staking in Ethereum ETFs.
Bitcoin: Room for a recovery or continuation of the pullback?
Bitcoin’s price slightly recovers and trades around $94,700 on Friday after declining nearly 6% earlier this week. US Bitcoin spot Exchange Traded Funds data shows signs of mild recovery, with a total net inflow of $462.2 million until Thursday.
Trusted Broker Reviews for Smarter Trading
VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.