The largest altcoin Ethereum (ETH) saw an increase of over 14% this week, briefly surpassing the $3,000 level. This price surge for Ethereum coincided with significant whale accumulation and a noteworthy block trade in the options market. This indicates investor confidence in the potential of the altcoin king.
Investor Makes $17 Million Ethereum Trade in a Single Transaction
In a notable transaction in the options market, an investor executed the day’s largest single block trade, involving a nominal $17 million position. According to data from Greeks.Live, the investor sold 3,000 units of the ETH-29MAR24-2800-C contract while simultaneously buying 3,000 units of the ETH-29MAR24-3000-C contract, maintaining a long position in Ethereum.
Analysis of the investor’s previous block orders suggests that this strategic rollover transaction resulted in significant profits, highlighting the investor’s confidence in Ethereum’s long-term prospects and ability to effectively capitalize on market movements.
In addition to the positive sentiment surrounding Ethereum, Bernstein analysts Gautam Chhugani and Mahika Sapra presented an optimistic outlook for the altcoin king. The analysts believe Ethereum is well-positioned to receive approval for a spot exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC). They forecast a 50% chance of approval for a spot Ethereum ETF as early as May, with near certainty within the next 12 months.
Bernstein analysts also highlighted Ethereum’s staking yield dynamics, environmentally friendly design, and institutional utility in creating new financial markets as factors contributing to mainstream institutional adoption.
Potential Correction Warning for ETH
Despite Ethereum’s price reclaiming the $3,000 level for the first time since April 2022, it faces some selling pressure due to overbought conditions as indicated by the Relative Strength Index (RSI) exceeding 70. Investors considering new long positions in ETH should be cautious due to the high likelihood of a correction.
Given the potential for a downward trend, investors may look to buy around the $2,689 support level, which represents a 10% drop from the current price, before the next upward move. This level could be an attractive entry point for those waiting outside or wanting to enter the market later.
With the latest data, ETH is trading at $2,974, up 1.46% in the last 24 hours. The data shows that the price of the altcoin king has risen by 12.34% in the last 7 days and by 20.36% in the last 30 days.
