Ethereum (ETH), which has been upsetting its investors with its weak performance against Bitcoin (BTC) for a long time, has experienced a big rise in recent weeks.
While ETH’s rise increased bullish expectations, option investors also switched to bull mode.
According to Coindesk, option traders have turned to a bullish call spread strategy and expect Ethereum to reach $6,000 by the end of the year.
According to Deribit data, institutional investors are aiming to make maximum profits if Ethereum reaches $6,000 by the end of the year by buying $3,500 call options and selling $6,000 call options. Both options expire on December 26.
Investors using this strategy will make maximum profits if Ethereum surpasses $6000 by the end of the year.
Crypto derivatives analyst Greg Magadini said that Ethereum still has room to rise, adding that ETH’s upside potential remains.
Believing that ETH is currently undervalued compared to other risk assets that are on the rise, Magadini stated that Ethereum has still not reached its cycle peak.
“Ethereum has not yet reached its peak and this is not the time to predict its peak.
ETH is likely to experience a major recovery,
The launch of a spot ETF with staking would be a significant catalyst for the rally.”
*This is not investment advice.
