Last month, Coendesk reported that the great money is becoming increasingly optimistic in Ether
with price graphics that indicate a possible rally above $ 3,000.
Now a new evidence has emerged, supporting those statements.
On Thursday, an operator paid a premium of more than $ 2 million to buy a total of 61,000 Buying Options Contracts of June Expiration Ether on Huelgas $ 3,200 and $ 3,400, according to the Crypto Data Source Exchange Deribit Options.
Theoretically, the call of $ 3,200 is a commitment that Ether’s price will increase from the current $ 2,460 to more than $ 3,200 by the end of the month. The purchase of the call of $ 3,400 indicates expectations for a movement above that level.
In other words, the merchant anticipates a price increase of more than 30% in three weeks.
A purchase option 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 implicitly optimistic in the market and pays a premium for asymmetric upward exposure. The paid premium, in this case, $ 2 million, is the maximum amount that the buyer can lose in case the market does not increase as expected.
The stars are aligned for bulls
The bullish flow is consistent with renewed optimism among some analysts on Ether’s pricing perspectives.
According to Youwei Yang, Ph.D., chief economist of Bit Mining, protocol updates, institutional movements and anticipation around new financial products have joined to restore investors confidence in Ether.
Ether’s matrix block chain, Ethereum, recently implemented the sicking update to improve the scalability, validity flexibility and user experience, introducing key features such as EIP-7702 to allow regular wallets to take advantage of smart contract capabilities.
“The tong update, which was launched on May 7, has been a key turning point. By raising the validator limit of 32 to 2,048 ETH and double the BLOB performance, Ethereum took a great step forward both in the bet and the scalability of Layer-2,” Yang said in an email to Coindesk.
“It is a clear sign that the network takes the scale and the improvement of its central infrastructure seriously. That is the type of technical progress that brings not only developers, but also users and capital, again to the ecosystem,” Yang added.
Yang cited the announcement of Sharplink Gaming that he would transfer $ 425 million to Ethereum as a support of the Ether Treasury Reserve as the corporate treasure asset.
“It reminds us of the early wave of Bitcoin’s treasure adoption by companies, and could only be the beginning of something similar for ETH,” Yang said.
Finally, speaking of institutional adoption, speculation has circulated that the regulators of the United States will soon approve an ETF of Ether Spot with a tender mechanism, opening doors for institutions to take exposure both to the price and the rethinking performance, which is missing a feature in the BTC ETFs.
Read more: Ether favored about Bitcoin by Big Money, here are 3 clues that point to Eth Bias in Crypto Market
