Options Market Bets on Ethereum Reaching $4000 by September

The derivatives market is showing significant interest ($158.5 million) in Ethereum call options priced at $4000, set to expire in September, according to data from Deribit.

At the time of writing, the second-largest cryptocurrency by market capitalization is trading at $3300, having lost 8.5% over the week.

Ethereum is facing challenges amid the broader crypto market downturn and rumors of the imminent launch of spot exchange-traded funds based on the asset in the US.

Despite the negative trend, Greg Magadini, Director of Derivatives at Amberdata, told CoinDesk that traders are showing “huge buying activity for September $4000 calls.” He particularly noted the large number of block trades.

“If ETH rises above $4000, we are likely to test and break new all-time highs,” the expert added.

Traders are likely interested in call options as they anticipate a price increase in the asset a few months after the launch of an ETH-ETF, CoinDesk suggested.

Previously, Amberdata highlighted the inflated implied volatility of Ethereum. Analysts believe this figure may be “unjustified,” as expectations from exchange-traded funds are overly high.

Earlier, analysts at QCP Capital predicted Ethereum could rise to $4800 following the approval of an ETH-ETF. Experts believe that demand amounting to 10-20% of inflows into Bitcoin funds will trigger a positive movement.

In early June, experts at VanEck raised their forecast for Ethereum to $22,000 by 2030.