DeFi
Ether (ETH) price has a 1 in 5 chance of reaching $5,000 by the end of June, according to DeFi options protocol Lyra
The price of ether (ETH) has a 20% chance of climbing back to $5,000 by the end of next month, data from decentralized options market Lyra shows. The price peaked at $4,692 during the previous bull market, according to CoinDesk Data.
To reach this new high, ether would need to rise by about a third from the current level of around $3,740. That would follow this week’s more than 20% rise, spurred by sudden optimism expressed by the U.S. Securities and Exchange Commission (SEC). will approve ETH spot exchange-traded funds (ETFs).
“Lyra options markets imply that there is about a 20% chance that ETH will hit $5,000 by June 28,” said Nick Forster, founder of Lyra and former options trader of Wall Street, to CoinDesk in an email. “There is a 20% chance that ETH will surpass $5,500 by July 26 as traders increased their positioning after the ETF speculation.”
Lyra is a decentralized settlement protocol for spot, perpetual and options trading. Over the past 24 hours, the protocol recorded $1.33 million in crypto options trading volume, accounting for over 50% of the global trading volume. decentralized finance (DeFi) total $2.08 million, according to data source DeFiLlama. Lyra Traders correctly predicted BTC’s Q1 rally and April peak near $70,000.
Options are derivative contracts that give their holders the option to buy or sell the underlying asset in the future at a price agreed upon today. A call gives the right to buy and a put option gives the right to sell. Traders typically buy call options to profit or protect against price increases and prefer put options when they anticipate a price decline.
This week, Lyra-based traders purchased ether call options expiring in June and July at prices above $5,000, revealing a bullish outlook.
“The approval of the ETH ETF is expected to have an outsized effect on ETH relative to Bitcoin. “ETH starts from a market cap that is about a third of that of Bitcoin before the ETF is integrated,” Forster said. being subject to liquidation (on the long side).”
Call Bias on Lyra complies with activity on major centralized exchanges like Deribit.