Ethereum (ETH) price may soon surge to $3,500, in a rally driven by Solana’s underperformance. One crypto analyst observed that capital is flowing back to Ethereum amid a surge in net flows and stablecoin supply. Another noted that Ethereum price is about to make a bullish breakout from consolidation. As the market sentiment flips bullish and Solana underperforms, is the $3,500 price in sight? ETH value today trades at $2,675 with a 1.4% decline in 24 hours. Trading volumes stood at $18 billion, down 14% in 24 hours. 2 Bullish Signals Support Ethereum Price Rally to $3,500 Analysts on X forecast that despite Ethereum price being stuck within a consolidation range between $2,400 and $2,700 in the last seven days, bullish signs are aligning that may ignite the next bullish leg to $3,500. These signals include: Surging netflows from Solana to Ethereum Incoming triangle breakout Surging Netflows from Solana to… Read More at Coingape.com
Ethereum (ETH) remains under pressure, struggling to break above $2,300. Its technical indicators still point to a downtrend. The BBTrend indicator is improving but remains negative, showing that bullish momentum hasn’t fully developed.
At the same time, the number of Ethereum whales has increased slightly, possibly due to the White House Crypto Summit, as investors anticipate regulatory shifts or the inclusion of ETH in the US strategic crypto reserve. For ETH to turn bullish, it needs to break key resistance levels and sustain buying pressure.
BBTrend Shows the Uptrend Isn’t Here Yet
Ethereum’s BBTrend indicator has climbed to -2.6, improving from -5.12 just a day ago. BBTrend, short for Bollinger Band Trend, is a technical indicator that helps identify price trends and momentum by measuring price deviations from a moving average.
When the BBTrend is deeply negative, it suggests strong bearish momentum, while a positive reading indicates bullish strength.
For Ethereum’s bullish uptrend to gain traction, BBTrend needs to cross above 0 and break higher levels. Two days ago, it briefly turned positive but only reached 1.98 before reversing lower, signaling weak buying pressure.
If BBTrend can push beyond its previous high and sustain positive levels, it would confirm stronger momentum, increasing the chances of Ethereum’s price maintaining a bullish trend.
Whales Accumulated ETH, But The Overall Trend Is Still Down
The number of Ethereum whales – addresses holding at least 1,000 ETH – has risen slightly to 5,768, up from 5,762 on March 5. However, the broader trend remains downward, as the count was 5,828 on February 22.
Tracking these large holders is crucial because whale activity often signals shifts in market sentiment, with accumulation suggesting confidence in price appreciation and distribution indicating potential selling pressure.
This recent uptick in whale numbers could be linked to the White House Crypto Summit, as major investors may be positioning themselves ahead of potential regulatory developments and the inclusion of ETH in the US strategic crypto reserve.
If this increase continues, it could indicate renewed confidence in Ethereum’s long-term outlook. However, for a stronger bullish case, a sustained rise in whale accumulation would be needed, reversing the recent downtrend.
Will the White House Crypto Summit Benefit Ethereum?
Ethereum has struggled to break above $2,300 in recent days. Its EMA lines still signal a downtrend as short-term averages remain below long-term ones.
If selling pressure increases, Ethereum price could test support at $2,077, and a breakdown below this level might push it as low as $1,996, reinforcing the bearish outlook.
However, if Ethereum reverses its trend, it could challenge resistance at $2,550 and potentially climb toward $2,855.
A strong breakout above these levels could set the stage for ETH to reclaim $3,000, a level it hasn’t reached since February 1, 2025, signaling renewed bullish momentum.
The White House confirmed that 104% tariffs against China will go live at midnight tonight, much to the woe of the crypto market. After a brief recovery to $79,000, Bitcoin fell to $76,000 amid $300 million in total crypto liquidations.
There are a few points of optimism, as Bitcoin’s long positions rose to 54%. Tomorrow will be a critical day to follow; it may bring chaos to TradFi, but crypto could potentially weather the storm.
China is America’s largest trading partner, and these sweeping tariffs could devastate the markets. Crypto, however, has been especially devastated. Publicly listed crypto companies faced another day of harsh drops after the tariff confirmation, as MicroStrategy’s MSTR slumped over 11%.
Additionally, Coinbase, Robinhood, and publicly traded Bitcoin miners all approached a 5% drop.
Bitcoin might be in a particularly dangerous position. Although a recent report claimed that it has been one of the crypto sector’s most tariff-proof assets, its risk profile might be changing.
It dropped 2.6% today, approaching the $75,000 price mark as more than $300 million was liquidated from crypto. If Bitcoin falls below this point, it could trigger further price routs.
Bitcoin Long-Short Ratio Fuels Optimism
As this morning’s price gains clearly demonstrated, the market still has a lot of remaining optimism. This could help all of crypto withstand tariff threats, including Bitcoin.
Its long positions have surged to 54%, showing that most traders are betting on BTC to rebound back to a higher price point.
Traders Go Long on Bitcoin Despite Tariffs. Source: Coinglass
Ultimately, tomorrow will be a very critical day for tariffs, crypto, and TradFi markets as a whole. It’s probably too late to hold out hope that Trump will decide not to escalate with China.
However, it remains to be seen whether the crypto market will continue to co-relate with the stock market after the tariffs are live or at-risk assets will reverse course and hedge against potential inflation fears.
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.
