Ethereum, to the surprise of many, is currently in a downward trend. Despite the recent launch of approved stock exchange funds, the value of the altcoin has fallen by approximately 17.5% to $3,300, down from its peak of $4,000 at the end of May.
The decline appears to be linked to broader bearish sentiment, fueled by Bitcoin’s recent performance. However, the current consolidation phase also presents opportunities, and some investors are hoping to take advantage of this.
Many ETH call options with a strike price of $4,000 have been purchased on the crypto exchange Deribit for September. These options give traders the right to buy Ethereum at the lower price of $4,000 if the price is above that level in September.
If the Ethereum price is $5,000 in September, investors will make a profit of $1,000 per coin. If the price is $3,000 in September, investors will not use the call options.
It’s important to note that call options also come with a cost, in the form of premiums. If the Ethereum price is $3,000 in September, the damage will be limited to what people paid for the call options.
Ethereum achieved a new all-time high in 2021, reaching a peak price of $4,800. Bitcoin recently broke its record in March, with a price of almost $74,000.
New Milestone in the Launch of US Spot Ethereum ETFs
The race to launch the first US ETH exchange funds has reached a new milestone. Asset manager Fidelity announced a “seed investment” of up to $4.7 million in a recent filing.
The investment highlights the confidence that traditional financial institutions have in Ethereum as a potential investment instrument. Fidelity’s subsidiary, FMR Capital, Inc., purchased 125,000 shares at approximately $37 each, allowing the fund to purchase 1,250 ETH.