Last month Coindesk reported big money becoming more and more bullish on ether
With price diagrams indicating a potentially rally over $ 3,000.
New evidence has now arisen that supports these claims.
On Thursday, a trader paid a prize of over $ 2 million to buy a total of 61,000 contracts with the outlet of Eths call options on June on Strikes $ 3,200 and $ 3,400, according to Data Source Crypto Options Exchange Deribit.
Theoretically, it is $ 3,200 call an effort for Ether’s price to rise from current $ 2,460 to over $ 3,200 by the end of the month. The purchase of the call of $ 3,400 indicates expectations of one step above this level.
In other words, the trader expects a price increase of over 30% in three weeks.
A call opportunity gives the buyer the right, but not the obligation to buy the underlying asset at a predetermined price at a later date.
A call buyer is implicit Bullish on the market and pays a premium for the asymmetrical upward exposure. The paid premium, in this case, $ 2 million, is the maximum amount that the buyer is losing if the market does not rise as expected.
Stars adapt to bulls
The bullish stream is in line with the renewed optimism among some analysts about Ether’s award prospects.
According to Youwei Yang, PhD, chief economist at bit mining, protocol rates, institutional features and expectations of new financial products are all gathered to restore the investor’s confidence in Ether.
Ether’s parent blockchain, Ethereum, recently implemented the pectra upgrade to improve scalability, validator flexibility and user experience that introduces key features such as EIP-7702 to enable ordinary wallets to utilize smart contract capacity.
“The pectra upgrade, which went alive on May 7, has been an important turning point. By raising the validator cap from 32 to 2,048 ETH and doubling blob flow, Ethereum took a big step forward in both stack efficiency and layer-2 scalability,” Yang said in an e-mail to Coindesk.
“It is a clear signal that the network is seriously looking at scaling and improving its core infrastructure. It is the kind of technical progress that not only brings developers but also users and capital, back in the ecosystem,” Yang added.
Yang quoted Sharplink Gaming’s announcement that it would move $ 425 million to Ethereum as a Treasury Reserve Asbold -Establishing Ether as corporate chains.
“It reminds us of the early wave of Bitcoin Treasury -Recording Business, and it might just be the beginning of something similar for Eth,” Yang noted.
Finally, when he talks about institutional adoption, speculation has circulated that US regulators will soon approve a place Ether Etf with a stacking mechanism that opens doors for institutions to take exposure to both the award and the stack yield, a feature that is missing in BTC ETFs.
Read more: Ether favored rather than Bitcoin of big money, here are 3 clues pointing to Eth -Bias in the crypto market
