The price of Ethereum (ETH) continues to rise, reaching $ 2,000 on April 2 after a strong technical boost following the resounding announcement of Visa.
As Cointelegraph reported on March 29, Visa will allow its partners to use USDC in the Ethereum blockchain network to settle transactions.
Since then, interest in Ethereum in futures and options markets has returned, with the former approaching $ 7 billion, the most in more than a month.
The Ethereum options market is particularly bullish
According to Cantering Clark trAder and cryptocurrency analyst, the Ethereum options market shows big bets starting in June.
The strike price with the highest open interest rate is $ 3,200. While this does not necessarily mean that there is a high probability that ETH will reach $ 3,200, it does mean that there is considerable interest at this price level. The trader said:
“Is the start of the $ ETH season? The options market giving big bets by June. The target is 3200 strikes.”
Although retailers could expect ETH to exceed $ 3,000 in June, there are several reasons, but one of the biggest factors is the hard-awaited update of EIP1559.
EIP1559 is expected to become operational in July 2021, reviewing the existing Ethereum blockchain fee structure.
Simply put, the proposal burns commissions paid to ETH, not miners, which advocates say stabilizes commissions for transactions on the Ethereum blockchain. As reported by Cointelegraph, the cost of using a chain of blocks has increased by 77% in recent days online, with the price of ether rising by 31%.
EIP1559 essentially burns some ETH paid for transactions, which should reduce the circular supply of ETH and therefore increase its value.
As many of the options targeting the June strike price would expire just before the introduction of EIP1559, it means that traders expect a rebound in the implementation phase.
Mass ETH shifts are also detected
Meanwhile, Ki Young Ju, CEO of CryptoQuant, notes that Ethereum has experienced mass exits in recent days.
Earlier this week, Ki noted that 400,000 ETHs had left Coinbase, which could mean an increase in institutional interest in ETH. He said:
“A few days ago, $ 400,000 of ETH came from Coinbase. We guess institutions are now buying ETH.”
Outflows often indicate a strong accumulation of individuals and institutions with high net worth, as when whales buy cryptocurrencies on the stock market, they usually move their holdings to wallets that they host themselves.
Therefore Opinions for Ethereum are generally positive over the next few months, as positive data in the chain complement the strong underlying catalyst at EIP1559.
Furthermore, The number of active addresses continues to grow, while foreign exchange reserves are constantly declining, indicating increased user activity and demand for ETH.
Glassnode also reported that the number of non-zero titles reached a new high, indicating that user activity is increasing.
Glassnode researchers they said:
“The number of Ethereum $ ETH addresses having more than zero has just reached ATH 56,543,380.”