Key Points
- Ethereum (ETH) sees a surge in options market interest, indicating a potentially bullish Q4 outlook.
- Despite short-term challenges, ETH’s value is expected to hit $3k by year-end.
Ethereum’s Revival in Options Market
Despite lagging behind Bitcoin and Solana, Ethereum, the largest altcoin, experienced a significant surge in interest in the options market on September 13th.
QCP Capital, a Singapore-based crypto trading firm, reported a spike in ETH options, with many contracts aiming for a $3k target by the end of the year.
Options data and volume are predictive indicators that provide future price expectations and overall market sentiment.
Market Sentiment and Institutional Interest
The surge in the options market, including Open Interest (OI) rates, suggested bullish expectations and potential price appreciation for Ethereum in Q4.
Chicago Mercantile Exchange (CME) data confirmed this outlook. On September 13th, Ethereum recorded a sharp increase in volume and OI for the first time this month.
The OI surged to $3.1 billion, and volume nearly reached $700 million, indicating a growing institutional interest in the altcoin.
However, the spot market saw minimal demand from US ETH ETFs on Friday, with a cumulative $1.5 million in daily inflow, but a net negative on the weekly count.
Coinbase analyst David Duong attributed Ethereum’s subdued price performance to the current market structure, noting that crypto investors were tied to other altcoin positions, limiting capital flow to Ethereum.
Another potential short-term challenge to Ethereum’s price was a spike in exchange reserves, with about 100k tokens moved to exchanges ahead of the Fed rate decision on September 18th.
At the time of reporting, Ethereum was valued at $2.4k, an increase of 5% over the past seven days of trading.
