Ethereum season? Professional investors collect ETH

Ethereum (ETH) price gained a strong momentum, reaching $ 2,000 as of April 2.

As stated by Cointelegraph on March 29, Visa announced that it will allow partners to use USDC on the Ethereum blockchain network.

The total amount of open positions for ETH futures. Source: Bybt.com

Since then, Ethereum positions in both futures and options markets have seen an increase approaching $ 7 billion, the highest level in the past month.

Ethereum options market overly optimistic

According to cryptocurrency analyst and trader Cantering Clark, the Ethereum options market has received large investments to be completed in June.

Ethereum options expiration dates. Source: Cantering Clark

The price of the trade with the highest open position is at $ 3,200. While this value does not necessarily mean ETH will reach $ 3,200, it does show that professional investors are targeting it. Trader said:

“Is the ETH season starting? The options market has received huge investments, marking June. [kullanım fiyatı] value is targeted. “

There are multiple reasons why traders expect ETH to surpass $ 3,000 by June. One of the biggest factors is the highly anticipated EIP1559 update.

EIP1559 will overhaul the existing fee structure of the Ethereum blockchain network and will be available in July 2021.

Loads of ETH exits from exchanges draw attention

CryptoQuant CEO Ki Young Ju pointed out that over the past few days there have been massive Ethereum exits from exchanges.

Clear ETH exits from the Coinbase exchange. Source: CryptoQuant

Earlier this week, Ki stated that 400,000 ETH has been removed from Coinbase, which could indicate an increase in institutional interest in ETH:

“A few days ago, 400,000 ETH came out from Coinbase. It’s a speculative estimate, but institutions are buying ETH.”

Exits often point to savings being made by institutions or people with large investments, as whales often move assets into their own wallets when they buy cryptocurrencies from exchanges.

Check Also

MicroStrategy shares plummet after Bitcoin announcement

A dull balance sheet, excessive debt burden, and over-investment in Bitcoin have resulted in MicroStrategy …

Leave a Reply

Your email address will not be published. Required fields are marked *