Crypto -Dealers are betting big on ether

In the wake of the recent rally.

Last week, block dealers, typically institutions and big players, performed tyr calls on ether, who bought $ 3,500 call options, while at the same time short -circuited an equal number of calls to the $ 6,000 strike, are both set to expire on December 26.

Dealers performed the strategy via over-the-counter-platform paradigm, which was later listed on Crypto Exchange-derived. Dealers executed 30,000 contracts of $ 3,500/$ 6,000 calls spreads over 10 separate trades and spent just over $ 7 million in initial debt/cost.

The strategy will make the highest profit if ether rises to or over $ 6,000 by December 26. On paradigm and abandoned an option contract represents an eth.

Therefore, the large volume of $ 3,500/$ 6,000 indicates a strong expectation of a bullish move to $ 6,000 by the end of the year. From writing, Ether hands switched to $ 2,510 according to Coindesk data.

Note that if ETH remains below $ 3,600, the strategy expires less, which limits the loss to the original cost of $ 7 million. Another disadvantage of this strategy is that dealers are losing on potential upside over $ 6,000 due to the short position at that strike level.

Ether’s price has risen over 80% to $ 2,500 since the beginning of April, when the wider market spanik saw one that eth hit a low of about $ 1,390 on multiple exchanges.

Magadini said there is no reason to call tops in ETH right now.

“I still like these upside trades, especially for the beat-up Ethereum, as risk assets continue to gather. There is a good argument for ETH” catch “as spot-ETFs with poor salaries could be a catalyst for institutional participation and mood turns. No need to call the top right now,” Magadini said.