Ethereum Surges Near $3,000 Amidst Options Trade

Ethereum has surged near $3k with a weekly gain of over 14% involving a block trade that took place in the options market worth 17 Million.

Ethereum , the second-largest cryptocurrency in the world, has extended its weekly gains to more than 14% and is currently trading close to $3,000.

On the other hand, the options market for Ethereum is experiencing a big block trade, while the price of Ethereum is experiencing a surge. Yesterday, traders executed the largest single block trade of the day, conducting a significant rollover position with a notional value of 17 million dollars in the Ethereum market.

This transaction was notable in the Ethereum market. The transaction consisted of the investor selling 3,000 ETH-29MAR24-2800-C holdings while simultaneously purchasing 3,000 ETH-29MAR24-3000-C contracts according to Greeks Live.

This lets the investor keep a long position in Ethereum. The analysis of previous block orders indicates that the original cost to open this position at the beginning of the month was roughly $200,000, as noted in the initial statement.

Through this strategic rollover, the investor was able to return their initial investment, but they also produced a profit that was roughly equivalent to three times the value of their principal investment.

Not only does this successful strategy highlight the investor’s belief in Ethereum’s potential over the long run, but it also demonstrates its ability to capitalize on market changes effectively.

Gautam Chhugani and Mahika Sapra, analysts at Bernstein have offered an optimistic forecast for ether. They have highlighted a convergence of variables suitable for the virtual cryptocurrency.

Bernstein analysts recently communicated to their customers that Ethereum is a competitor that stands out as a strong contender for obtaining clearance for a spot exchange-traded fund (ETF) from the United States Securities and Exchange Commission (SEC).

Building on this momentum, Bernstein predicts that there is a 50% chance that an investment vehicle will hit the market as early as May and that there is an almost certain probability that it will be approved within the next twelve months.

Moreover, the analysts said that the data gave a hint of optimism over the impending Dencun upgrade that will take place the following month.

This upgrade “provides for a dedicated corridor and blockspace for roll-ups, making transaction costs cheaper by another 50% to 90% .”

Although the price of Ethereum has recaptured the $3,000 mark for the first time since April 2022, it is currently seeing some selling pressure.

The Relative Strength Index (RSI) of Ethereum is over 70 indicates that the Ethereum price is currently facing the consequences of being overbought.

They are already experiencing these consequences. It is possible that traders who are contemplating fresh long positions would be wise to exercise caution, given the strong chance that the market for ETH will undergo a correction.

With this potential downward trend, investors who have been waiting on the sidelines or those who enter the market later may find an opportunity to buy around the $2,689 support level before the following upward movement.

This could be an excellent time to buy. This level represents a 10% decline from the previous one, given the current price.