Ethereum Extends Weekly Gains Above $3,000
The world’s second-largest cryptocurrency, Ethereum (ETH), has seen a surge in its price, with weekly gains of over 14%. It is currently trading close to $3,000. This rally in Ethereum’s price is attributed to strong whale accumulation and a significant block trade in the options market.
Ethereum Block Trade Signals Investor Confidence
In the Ethereum market, a notable transaction took place involving a substantial rollover position worth $17 million notional value. This transaction marked the largest single block trade of the day. The investor sold 3,000 ETH-29MAR24-2800-C holdings while simultaneously buying 3,000 ETH-29MAR24-3000-C contracts, maintaining a long position in Ethereum.
By strategically executing this rollover position, the investor not only recouped their initial investment but also generated a profit three times their principal amount. This successful maneuver reflects the investor’s confidence in Ethereum’s long-term potential and their ability to capitalize on market movements effectively.
Institutional And Spot ETF Demand
Bernstein analysts have presented an optimistic outlook for Ethereum, highlighting favorable factors for the cryptocurrency. They suggest that Ethereum stands out as a strong contender for securing approval for a spot ETF by the U.S. Securities and Exchange Commission (SEC).
Bernstein analysts also anticipate an ether investment vehicle entering the market as early as May, with a near-certain probability of approval within the next 12 months. They emphasize Ethereum’s staking yield dynamics, environmentally friendly design, and institutional utility as key factors driving mainstream institutional adoption.
The upcoming Dencun upgrade next month is also seen as a positive development for Ethereum, as it will make transaction costs cheaper by 50%-90%.
Considerations for Traders
Although Ethereum has reclaimed the $3,000 mark, it is facing selling pressure and showing signs of being overbought. The Relative Strength Index (RSI) surpassing 70 indicates this. Traders looking to enter new long positions should exercise caution due to the high probability of a market correction for ETH.
If a downward trend occurs, investors who have been waiting on the sidelines or those entering the market later might find an opportune moment to buy around the $2,689 support level before the next upward movement. This level represents a 10% decrease from the current price.
By
By
By
By
