Is Ethereum ready for a massive rally? Options traders are placing massive bets on targets worth over $3,600 for June

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Ethereum (ETH) options for June are showing clear interest in higher strike prices, focusing on levels above $3,600.

Data from Deribit reveals concentrated bets among traders on calls above this price, indicating bullish sentiment for Ethereum’s near-term trajectory. The most preferred strike price among these positive bets is an ambitious $6,500.

Ethereum bull market options

Specifically, options are contracts that give investors the right, but not the obligation, to buy (in the case of a call option) or sell (in the case of a put option) the underlying asset at a specified strike price before the expiration date.

A call option is typically purchased by investors who believe that the price of an asset will raise, allowing them to buy at a lower rate and potentially sell at a higher market price. On the other hand, put options are preferred by people who anticipate a decline in the price of an asset and whose goal is to sell at the current rate and buy back at a lower value.

Currently, the Ethereum options market is heavily tilted towards call options, with total open interest – representing the total number of outstanding contract options – showing a preference for higher strike prices.

This concentration of calls, mainly above the $3,600 level, suggests that a significant segment of the market is preparing Ethereum to move to higher levels by the end of June.

Ethereum Open Interest by Expiration Date. | Source: This will be a joke

According to Deribit data, approximately 622,636 Ethereum phone contracts will expire by the end of June, representing a face value of more than $1.8 billion. Such a significant position highlights the market’s confidence in Ethereum’s potential growth.

The data further shows that the largest number of open trades are concentrated around the strike price of $6,500, with a notional value of $193 million.

Ethereum open interest by strike price.
Ethereum open interest by strike price. | Source: This will be a joke

This concentration reflects trader optimism and supports the Ethereum market price, especially if these options are exercised when the asset price approaches or exceeds these strike levels.

Despite the optimism contained in these options, Ethereum is currently in a subtle downturn. It is down 5.4% over the past week and 2.2% over the past 24 hours, sitting below $2,900. This decline further focuses attention on upcoming market catalysts that could significantly impact the ETH price.

Ethereum (ETH) price is moving sideways on the 4-hour chart.  Source: ETH/USDT on
ETH price is moving sideways on the 4-hour chart. Source: ETH/USDT incl

Regulatory Decisions and Technical Indicators: Double Impact on ETH’s Path

One significant upcoming event is the U.S. Securities and Exchange Commission’s (SEC) decision on several Ethereum-based ETF applications, which is expected to be released by May 25.

This decision is crucial because approval could spark a wave of institutional investment in Ethereum, potentially catapulting its price. Conversely, rejection could dampen bullish sentiment and lead to further declines.

From the point of view of technical analysis, there are many indications of a possible rebound. A “bullish cipher pattern” identified by a Titan Of Crypto analyst suggests Ethereum may be at a turning point. Currently, Ethereum is trading at the 38.2% Fibonacci retracement level, a key support zone in many bull markets.

This level has historically acted as a starting point for upward price movements, suggesting that Ethereum may be preparing for a significant rally.

Featured image from Unsplash, chart from TradingView


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