ETH Options: Ethereum Sees Largest Single Block Trade Of $17 Million, Whats Next？

The worlds second-largest cryptocurrency Ethereum (ETH) extends its weekly gains above 14% and is currently trading close to $3,000. This Ethereum price rally comes amid strong whale accumulation while its options market sees a massive block trade.

Ethereum Block Trade Signals Investor Confidence

In a notable transaction in the Ethereum market, a substantial rollover position worth $17 million notional value was executed yesterday, marking the largest single block trade of the day. The transaction involved selling 3,000 ETH-29MAR24-2800-C holdings while simultaneously buying 3,000 ETH-29MAR24-3000-C contracts, allowing the investor to maintain a long position in Ethereum, reports Greeks.Live.

Analysis of previous block orders suggests that this position initially cost approximately $200,000 to open at the beginning of the month. With this strategic rollover, the investor not only managed to recoup their initial investment but also generated a profit equivalent to three times their principal amount.

This successful maneuver also underscores the investors confidence in the long-term potential of Ethereum, and their ability to capitalize on market movements effectively.

Institutional And Spot ETF Demand

Bernstein analysts, Gautam Chhugani and Mahika Sapra, have presented an optimistic outlook for ether, highlighting a convergence of favorable factors for the cryptocurrency.

In their recent communication to clients, Bernstein analysts articulated that Ethereum stands out as a strong contender for securing approval for a spot ETF by the U.S. Securities and Exchange Commission (SEC). Building on this momentum, Bernstein suggests there is a 50% likelihood of an ether investment vehicle entering the market as early as May, with a near-certain probability of approval within the next 12 months. The analysts wrote:

“Ethereum with its staking yield dynamics, environmentally friendly design, and institutional utility to build new financial markets, is well positioned for mainstream institutional adoption”.

The report also hinted at the optimism surrounding the upcoming Dencun upgrade next month which “provides for a dedicated corridor and blockspace for roll ups, making transaction costs cheaper by another 50%-90%”.

While the Ethereum price has reclaimed the $3,000 for the first time since April 2022, it faces some selling pressure here.

The Ethereum price is currently experiencing the repercussions of being overbought, as indicated by the Relative Strength Index (RSI) surpassing 70. For traders considering new long positions, exercising caution might be prudent, given the high probability of a market correction for ETH.

With this potential downward trend, investors who have been waiting on the sidelines or those who enter the market later might find an opportune moment to buy around the $2,689 support level before the next upward movement. This level represents a 10% decrease from the current price.