The Bitcoin volatility has risen over the past few weeks as the price has been fluctuating within a huge range. Despite the bearish interference, the price has been under bullish influence by forming consecutive higher highs and lows. With this, the bullish trajectory for the BTC price remains pretty high, keeping the upper targets at $90,000 activated. Meanwhile, the traders remain uncertain, and as a result, the almost equal liquidity is piling up on either side of Bitcoin.
The crypto markets have risen above the turbulence caused by Trump’s Liberation Day while Bitcoin displays resilience, hinting towards a potential breakout. After a minor upswing, the bears have begun to actively push the price lower, which has dropped it back below $83,000. This constant shift in the price trend seems to have raised skepticism among investors, due to which the liquidity has accumulated with over 100x leverage at $80,000 and $82,000.
Interestingly, the data from Coinglass suggests that the volume also has a close match, which suggests a liquidity grab could be on the horizon.
This piled-up liquidity suggests the possibility of both breakout and breakdown, while the wider market dimensions suggest the bulls are gaining more strength than the bears. Recently, US President Donald Trump announced a massive rise in tariffs on other countries, which was the highest since 1968. The traditional markets tumbled down and experienced a huge pullback not seen since 2020.
These levels continue to remain deflated while Bitcoin’s price, facing minimal bearish action, has begun to recover. Moreover, the token is breaking out against the Nasdaq 100, which can be considered a strong bullish signal for the entire crypto space.
The chart compares Bitcoin’s performance against the Nasdaq 100, showing the crypto breaking above a key resistance level of around 1.40 in 2021 and 4.50 in 2025. This signals stronger growth relative to tech stocks, suggesting the correlation between Bitcoin and Nasdaq100 has been turning negative since late 2024. This suggests a potential market shift could be on the horizon, which may revive a strong Bitcoin (BTC) bull run above $100K towards new highs.
Ethereum reached a notable milestone earlier this month when the US Securities and Exchange Commission (SEC) approved options trading for several spot exchange-traded funds (ETFs). The move is expected to increase liquidity, attract interest from institutional investors, and solidify Ethereum’s position as a major cryptocurrency.
Yet Ethereum’s smaller market cap relative to Bitcoin means it is also vulnerable to gamma squeezes, thereby increasing investor risks. BeInCrypto consulted an expert in derivatives trading and representatives from FalconX, BingX, Komodo Platform, and Gravity to analyze the potential impact of this new characteristic.
This week marked the official debut of options trading for spot Ethereum ETFs in the United States. BlackRock’s iShares Ethereum Trust (ETHA) was the first to list options, with trading commencing on the Nasdaq ISE.
Shortly after, a broader availability of options followed, including those for the Grayscale Ethereum Trust (ETHE) and the Grayscale Ethereum Mini Trust (ETH), as well as the Bitwise Ethereum ETF (ETHW), all of which began trading on the Cboe BZX exchange.
This move allows a wider range of investors, beyond crypto traders, to benefit from hedging and speculation opportunities on Ethereum’s price through options on familiar investment vehicles like ETFs without direct ownership.
The timing of this news is particularly positive, as Ethereum has been losing some ground in the market lately.
Options Trading to Bolster Ethereum’s Market Position
A significant decline in market confidence surrounded Ethereum this week, with BeInCrypto reporting its price had plummeted to its lowest point since March 2023. This drop coincided with a broader market downturn, worsened by Donald Trump’s Liberation Day.
Meanwhile, large Ethereum holders are increasingly selling off substantial amounts, putting downward pressure on their prices. Ethereum’s value has fallen sharply by 51.3% since the beginning of 2025, and investor confidence has waned, as evidenced by a decrease in addresses holding at least $1 million in ETH.
Holders with at least $1 million worth of ETH. Source: Glassnode.
With options trading now accessible to more traders, experts anticipate that Ethereum’s market position will improve.
“ETH’s been leaking dominance, stuck sub-17%. Options give it institutional gravity. It becomes more programmable for fund strategies. More tools mean more use cases, which then in turn means more capital sticking around,” Martins Benkitis, CEO and Co-Founder of Gravity Team, predicted.
This newfound accessibility of options trading will create additional opportunities for investors and the broader Ethereum ecosystem.
Greater Investor Access and Liquidity
The SEC’s approval of Ethereum ETFs in July 2024 was significant because it allowed traditional investors to enter the crypto market without directly holding the assets. Now, with options trading also available, these benefits are expected to be even greater.
The Ethereum ETF market will naturally become more liquid with increased participation through options trading.
High Trading Volumes and Hedging Demands
The SEC’s fresh approval of options trading for Ethereum ETF investors suggests that the market will likely initially experience a high trading volume. As a result, market makers must be prepared.
An increase in call options will require institutional market makers to hedge by buying more Ethereum to meet demand.
Ethereum will also secure a unique advantage, particularly in institutional trading, enhancing its perceived quality and driving optimism among key market participants.
“ETH just got a serious institutional tailwind. With options now in play, Ether is stepping closer to BTC in terms of tradable instruments. This levels up ETH’s legitimacy and utility in hedging strategies, narrowing the gap on Bitcoin’s dominance narrative,” Benkitis told BeInCrypto.
Yet, rapid surges in options trading could also have unintended consequences on Ethereum’s price, especially in the short run.
Will Investors Suffer a Gamma Squeeze?
As market makers rush to acquire more of the underlying asset in case of a higher volume of options calls, Ethereum’s price will naturally increase. This situation could lead to a pronounced gamma squeeze.
When market makers hedge their positions in this scenario, the resulting buying pressure would create a positive feedback loop. Retail investors will feel more inclined to join in, hoping to profit from Ethereum’s rising price.
The implications of this scenario are especially pronounced for Ethereum, considering its market capitalization is notably smaller than that of Bitcoin.
Retail traders’ aggressive buying of ETHA call options could compel market makers to hedge by acquiring the underlying ETHA shares, potentially leading to a more pronounced effect on the price of ETHA and, by extension, Ethereum.
“We believe option sellers will generally dominate in the long-run but in short bursts we could see retail momentum traders become massive buyers of ETHA calls and create gamma squeeze effects, similar to what we’ve seen on meme coin stocks like GME. ETH will be easier to squeeze than BTC given it is only $190 billion market cap vs BTC’s $1.65 trillion,” Joshua Lim, Global Co-head of Markets at FalconX, told BeInCrypto.
Arbitrage involves exploiting price differences for the same or nearly identical assets across different markets or forms. This is done by buying in the cheaper market and selling in the more expensive one.
According to Grant, traders will increasingly look for and exploit these price differences as the market for ETH options on different platforms develops.
While arbitrage activity is expected to refine pricing and liquidity within the Ethereum options market, the asset continues to operate under the shadow of Bitcoin’s established market leadership.
Will Landmark Options Approval Help Ethereum Close the Gap on Bitcoin?
Though Ethereum achieved a major landmark this week, it faces competition from a major rival: Bitcoin.
In late fall of 2024, options trading started on BlackRock’s iShares Bitcoin Trust (IBIT), becoming the first US spot Bitcoin ETF to offer options. Though not even a year has passed since the original launch, options trading on Bitcoin ETFs experienced strong trading volumes from retail and institutional investors.
According to Kadan Stadelmann, Chief Technology Officer of Komodo Platform, options trading for Ethereum ETFs will be comparatively underwhelming. Bitcoin will still be the cryptocurrency of choice for investors.
“Compared to Bitcoin’s Spot ETF, Ethereum’s ETF has not seen such stalwart demand. While options trading adds institutional capital, Bitcoin remains crypto’s first mover and enjoys a greater overall market cap. It is not going anywhere. It will remain the dominant crypto asset for institutional portfolios,” Stadelmann told BeInCrypto.
Consequently, his outlook does not include Ethereum’s market position surpassing Bitcoin’s in the immediate term.
“The once-promised flippening of Bitcoin’s market capitalization by Ethereum remains unlikely. Conservative and more-monied investors likely prefer Bitcoin due to its perceived safety compared to other crypto assets, including Ethereum. Ethereum, in order to achieve Bitcoin’s prominence, must depend on growing utility in DeFi and stablecoin markets,” he concluded.
While that may be the case, options trading doesn’t harm Ethereum’s prospects; it only strengthens them.
Can Ethereum’s Options Trading Era Capitalize on Opportunities?
Ethereum is now the second cryptocurrency with SEC approval for options trading on its ETFs. This single move will further legitimize digital assets for institutions, increasing their presence in traditional markets and boosting overall visibility.
Despite recent significant blows to Ethereum’s market position, this news is a positive development. Although it might not be sufficient to surpass its primary competitor, it represents a step in the right direction.
As investors get used to this new opportunity, their participation level will reveal how beneficial it will be for Ethereum.
Ethereum whales have been aggressively buying the ETH price dips while adding a total of 1.1 million coins within just the past 48 hours. Following President Donald Trump’s signing of the executive order for the US strategic reserve, ETH has seen a 6% drop today amid the broader market correction. However, institutional players could once again charge in leading to trend reversal soon.
Ethereum Whales Are Aggressively Buying the Dips
Crypto analyst Ali Martinez has highlighted a significant development in the Ethereum market, revealing that whales have purchased 1.10 million ETH within the past 48 hours.
Source: Ali Martinez
The sudden accumulation has raised speculation within the community, with Martinez questioning whether the whales have insider knowledge of upcoming market developments. This surge in whale activity could signal confidence in Ethereum’s future prospects or an anticipation of a major event.
A day before, Donald Trump’s DeFi project World Liberty Financial purchased $10 million worth of Ethereum. Overall, they purchased a total of 4,468 Ethereum (ETH) at a price of $2,238 per ETH.
The ETH whale action has surged over the past week, along with an additional purchase of 110,000 ETH. Historical data suggests that significant accumulation by Ethereum whales often precedes periods of price stabilization or upward movement for Ethereum. “As long as Ethereum $ETH stays above $2,200, the odds of a rebound increase,” noted analyst Martinez.
Currently, the ETH price is trading 5.75% down at $2,170 levels with a market cap of $261 billion. The 24-hour liquidations have shot up above $71 million, of which $52.96 million is in long liquidations, despite the executive order for US strategic reserve involving ETH.
Will ETH Price Bounce Back Strongly From Here?
On-chain analytics firm Santiment revealed that Ethereum sentiment has dropped to its lowest levels of the year amid strong underperformance. Despite the bearish mood dominating social media discussions, Santiment suggests this could be a positive indicator for long-term holders.
Source: Santiment
Crypto analyst Titan of Crypto dismissed fears about Ethereum’s decline, emphasizing that the second-largest cryptocurrency remains technically robust.
According to the analyst, Ethereum continues to move within a broadening wedge pattern—a bullish technical setup. Additionally, ETH recently revisited the “Reload Zone” (RLZ), a key price area where professional traders often look to initiate long positions or accumulate more. Also, the below image shows that the RSI is in the support zone and likely to bounce from here.
During the last week of April, the crypto markets triggered a strong recovery, and most of the cryptos rebounded from their bottoms. Virtuals Protocol’s price also flipped after hitting the bottom below $0.6 and rose above $1.6. Multiple reasons account for the surge, and now that the token has triggered a strong upswing, the VIRTUAL price is expected to complete the parabolic recovery and experience another 130% upswing in the next few weeks.
The surge in the VIRTUAL price was followed by a popular exchange, Binance, which enabled deposits and trading by listing it. The listing led to stronger liquidity and new market interest as VIRTUAL became more easily accessible to all. Moreover, the Virtuals Protocol platform has launched the Genesis launch event, which was exploited by a project called PlayGame AI. Despite this, the token regained the trust of the investors, which materialised with the recent surge.
Now the question arises whether the VIRTUAL price will rise by another 100% after surging by over 200%?
The daily chart of VIRTUAL suggests the price has triggered a parabolic recovery and may follow the curve to rise and reach the neckline. After securing the range above the 50-day MA, the price has surged above the 200-day MA, which could further head towards a Golden Cross. On the other hand, the RSI has surged and entered the overbought range for the first time in 2025, validating the bullish claim. Therefore, the VIRTUAL price is believed to maintain a strong ascending trend and rise above the crucial resistance at $1.84 in a short while.
Here, the token may face some resistance. Once cleared, the next pitstop could be above $2.5, which may validate the beginning of a fresh bullish trend. Despite this, the on-chain data of Virtuals Protocol lags significantly behind the price, with a steep decline in the daily revenues that grew rapidly in the last few weeks of 2024. However, the buying volume has surged notably, which could keep up the momentum of the rally for the rest of 2025 and mark a new ATH above $7.
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During the last week of April, the crypto markets triggered a strong recovery, and most of the cryptos rebounded from their bottoms. Virtuals Protocol’s price also flipped after hitting the bottom below $0.6 and rose above $1.6. Multiple reasons account for the surge, and now that the token has triggered a strong upswing, the VIRTUAL …
