Is Ethereum on Track to Hit $3K by December?
Ethereum (ETH) has been trailing behind other major cryptocurrencies like Bitcoin (BTC) and Solana (SOL), despite receiving US spot ETF approval in Q2. However, recent developments on Friday, the 13th of September, have sparked renewed interest in this leading altcoin.
According to reports from the Singapore-based crypto trading company QCP Capital, ETH options have seen a significant surge, especially with a focus on contracts that aim for a price point of $3,000 by the end of the year. A section of the firm’s latest update highlighted,
“The options market has shown increased activity in relation to ETH, with over 20,000 contracts set on reaching the $3,000 mark by December 27. This has led to a potentially significant year-end perspective for Ethereum.”
The Resurgence of ETH’s Bullish Sentiment
It is important to note that options data, along with trading volume, can provide valuable insights into future price trends and market sentiment.
The recent surge in the options market, accompanied by rising Open Interest (OI) rates, suggests a positive outlook and a potential uptrend in the coming months.
Corroborating this sentiment is data from the Chicago Mercantile Exchange (CME), which confirms the positive outlook shared by QCP Capital.
On September 13th, Ethereum witnessed a notable increase in trading volume and Open Interest for the first time in September. The Open Interest soared to $3.1 billion, while the trading volume approached $700 million, signaling a growing interest from institutional investors in ETH.
While options trading activity has been on the rise, demand for US ETH ETFs remained subdued on Friday.
These ETF products only saw a total daily inflow of $1.5 million, which was offset by a net outflow for the week amounting to $12.92 million. This trend still needs to reverse to restore confidence among investors.
Addressing ETH’s somewhat lackluster price performance, Coinbase analyst David Duong attributed it to the current market dynamics.
Duong observed that many crypto investors are heavily invested in other altcoins, which restricts the flow of capital into Ethereum.
Another potential challenge in the short term for ETH’s price trajectory is a sudden surge in tokens being moved onto exchanges, with approximately 100,000 tokens being transferred ahead of the upcoming Fed rate decision on September 18th.
As of the time of writing, Ethereum is valued at $2,400, reflecting a 5% increase in its trading value over the past week.