- Options traders have bet on Ether hitting $15,000 by March 2022.
- Their bullish hunch is based on the supposed approval of an Ethereum ETF by the US SEC.
- A technical setup on the ETH/USD daily chart also points to a bullish trend.
BENGALURU (CoinChapter.com) – Ethereum’s underlying blockchain asset, Ether, will experience a parabolic price surge to $15,000 on the back of an ETH ETF approval next year. That’s what the vast majority of ETH options traders are betting on.
Ideally, an ETH hitting $15,000 options wager would give traders the right to buy Ether at the said price. But they don’t need to do so.
Related: Ethereum analysts weigh behind $13K ETH projection in Q4 as crypto market recovers
Ethereum ETF Induced Bullishness
The rationale behind ultra-bullish Ether bets stems from a supposed effect that caused Bitcoin to rally post the recent BTC futures-linked ETF launch.
As per reports, investors in the ProShares Bitcoin Futures ETF plugged in little more than $1 billion. The fund, in turn, bought BTC futures contracts en masse, causing a substantial appreciation in Bitcoin price so much that the top cryptocurrency charted a new all-time high of $67,000.
Related: Newsflash: Bitcoin hits a fresh milestone high, crosses $66.1K on ETF FOMO
The anticipation of a similar impact has led to a tremendous increase in “buying interest” for ETH derivative contracts.
“This flow began around the time the bitcoin ETF was confirmed, and is thought to be whales positioning for an ethereum futures ETF announcement.”
opined Adam Farthing, chief risk officer for Japan at crypto specialist trading firm B2C2
US Securities and Exchange Commission approving the ProShares Bitcoin Futures ETF sparked speculations about the financial regulator okaying more than 20 applications. But whether or not the SEC will approve an Ethereum ETF application remains to be seen.
Crypto community folks are hopeful nonetheless.
“Bitcoin ETFs have finally been approved in the USA, which means that Ethereum ETFs will be coming soon. Yes, we still want spot ETFs not futures ETFs, but it will be a big step forward for ETH regardless.”
said Bitcoin and crypto investment advisor Lark Davis
Bullish Technical Setup
The ETH/USD pair formed an Ascending Triangle formation on the daily chart. In detail, an Ascending Triangle technical setup usually leads to assets charting a higher price trajectory. It is because the degree of the rally is always proportional to the height of the perpendicular side of the triangle.
In the current setup, the height works out as $3,861. A rally proportional to this distance would lead the ETH/USD pair to $8,137, a 47.5% upside from current prices. Furthermore, ether’s relative strength index (RSI) holding within the 30-70 range also implies that the leading smart contract token has further room to rise.
The successful completion of Ethereum’s Altair upgrade brought back bullish sentiment, and as a result, buyers resumed the uptrend at the opening bell of the London trading session on Thursday.
Related: Ether holds above $4,000 as Ethereum’s Altair upgrade approaches
