Trader bets millions of dollars that Ethereum will rise to $ 3400 by the end of June

One of the crypto traders has made deals worth more than $ 2 million by buying call options on ethereum ETH $2,514.63 Bridged Ether (StarkGate) 1.07% Market capitalization $0.15 billion VOL. 24 hours $0.7 billion with the expectation that the price will rise to more than $ 3,200-$ 3,400 by the end of June. Such actions coincide with the renewed optimism among analysts about the prospects for ethereum, Coindesk writes.

It is known that the trader has purchased 61 thousand contracts with an expiration date of the end of June on the Deribit exchange. Call options give the right to purchase an asset at a predetermined price, and in case of unfavorable price movements, the trader will lose only the paid premium, which in this case amounts to $ 2 million.

The main reason for this optimism was the recent Ethereum update called Pectra, which increased the network’s scalability and flexibility for validators. In particular, the update increased the validator limit from 32 to 2,048 ETH and doubled the blob capacity, which is important for Layer-2 solutions.

BIT Mining Chief Economist Yuwei Yang believes that technical progress, along with institutional moves and the possible launch of a spot ether ETF in the United States, is restoring investor confidence in the asset. He recalled that SharpLink Gaming announced that it had invested $ 425 million in ethereum as part of its corporate reserve.

There is also growing speculation about the imminent approval of a spot ETF on ethereum in the United States, which will allow institutions to gain not only access to the asset but also profit from staking. This is different from a bitcoin ETF, which does not have this option.