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Traders Count On Ethereum To Reach $500 Mark

Ethereum price
Ethereum

With Ethereum reaching $420 in the spot market, traders looked at the open interest on ETH futures and options to anticipate a future price for the world’s second largest cryptocurrency. Futures has grown 250% in the last three months while data on ETH options suggests traders are bullish that ETH would reach $500 soon.

In the options market, the put/call ratio is currently at a neutral position, different from three months ago when put options were 20% smaller than the call options. In this market, call options are for neutral/bullish strategies while put options are for bearish strategies.

After breaking past $400, ETH continued its rally which peaked at $440 on Aug. 14. But the volume was weaker against the previous price run. ETH is currently at oversold levels based on RSI indicator and above the upper line of the Bollinger band.

Currently, data suggests, there are more call options than put options, with call options from $340 to $880 setting to expire in September with a total value of $4.4 million and an open interest of $40.1 million. Put options have a current value of $940,000.

Still, most call options are at the prices $480 and above, with a total worth of around $1 million. Cointelegraph reporter Marcel Pechan suggests that the money backing the $500 level price should be indicative that it is feasible for ETH to reach that target in 40 days.

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