Cardano has seen a notable price increase in recent days, reflecting broader market improvements. The altcoin is currently trading at $0.79, marking a 17% gain over the past three days.
Alongside favorable market conditions, bullish signals from the network itself indicate that Cardano’s price could be on the path to recovery of the 40% losses it sustained in March.
Are Cardano Investors Noting An Opportunity?
The MVRV Long/Short Difference for Cardano is currently sitting at -89%. This indicates that long-term holders (LTHs) are facing near-zero profits, with some even experiencing losses. On the other hand, short-term holders (STHs) of less than a month are seeing profits.
This oscillating indicator reaches extreme negative values near the end of the bear cycle, as when STHs begin to sell, new investors typically step in to absorb the selling pressure.
This dynamic can help keep the price afloat and even push it higher, maintaining positive momentum. The shift could play a pivotal role in recovering from the recent losses.
Bullish technical indicators support Cardano’s macro momentum. The Moving Average Convergence Divergence (MACD) shows that bullish momentum is strengthening.
The rising green bars on the histogram suggest that the market is experiencing positive momentum, and the possibility of a bearish crossover is still distant.
Cardano is currently trading at $0.78, a 17% increase over the last three days, bringing it closer to the $0.80 resistance. This recent rally offers another opportunity for Cardano’s price to recover the 40% losses it experienced earlier in March.
If positive momentum continues, Cardano could break through key resistance levels and target higher price points.
A complete recovery would likely require Cardano to reach $1.13, but this could take more time. For now, the realistic target is to flip the $0.85 resistance into support.
If successful, this would lock in the recent gains and set ADA up for further growth towards $0.99, positioning it for a sustained recovery.
However, if Cardano fails to maintain its growth and drops below $0.74, the altcoin could enter a period of consolidation. In this scenario, the price would likely fluctuate between $0.74 and $0.66, invalidating the current bullish outlook.
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.
Cardano (ADA) has returned to a bearish trend following its failure to breach the $0.77 resistance. The altcoin has been facing a decline, and recent technical indicators suggest that the bearish momentum could continue.
A surge in negative market signals has contributed to the continued downward movement, potentially pushing ADA below the critical $0.50 support level.
Cardano Investors’ Losses Surge
Currently, Cardano is experiencing the formation of a Death Cross, which marks a significant shift in market sentiment. The 200-day exponential moving average (EMA) recently crossed over the 50-day EMA, signaling the end of the altcoin’s five-month bullish momentum.
This bearish crossover is often seen as a precursor to further price declines, as it suggests that market sentiment is shifting to a more cautious, bearish outlook.
The Death Cross is a classic sign of weakening investor confidence, which has been compounded by poor market conditions. As ADA struggles to regain upward momentum, the bearish trend is likely to persist unless there is a significant change in market sentiment.
Moreover, investors appear to be moving away from ADA, further fueling the decline in its price.
In addition to the Death Cross, the overall macro momentum for Cardano is also showing signs of weakness. The MVRV (Market Value to Realized Value) Long/Short Difference has dipped below the neutral line, indicating that long-term holders (LTHs) are on the verge of losing their profits.
If this trend continues, the profitability of LTHs could shift to short-term holders (STHs), further intensifying the bearish pressure.
A continued drop in the MVRV Long/Short Difference below the zero line would signal that investors’ belief in ADA’s recovery is waning. With LTHs potentially seeing their profits evaporate, there is little incentive for them to hold on to their positions, which could lead to further price declines.
Cardano MVRV Long Short Difference. Source: Santiment
ADA Price Decline Likely
Currently, Cardano’s price is hovering at $0.57, holding above the critical support of $0.54. However, this support is the last line of defense before ADA potentially falls below $0.50. If the price continues its downward trajectory, a drop to $0.50 is a real possibility.
Should the bearish trend intensify, ADA could easily fall through the $0.50 support, extending the losses and pushing Cardano toward $0.46. This would significantly diminish any chances of a recovery and deepen the ongoing downtrend.
The only way to reverse this bearish outlook would be for ADA to secure $0.57 as a support floor. A successful break above $0.63 could restore confidence among investors, which may help avoid further losses and provide a path for recovery.
HBAR has seen a notable uptick in recent days, showing signs of recovery after the significant losses recorded in March. If this momentum continues, the cryptocurrency could soon make a comeback, potentially pushing its price higher.
HBAR’s positive movement in April provides hope that it may avoid repeating past patterns of sharp declines, offering a chance for sustained growth in the coming weeks.
Hedera Is Observing A Strong Bullish Momentum
The Relative Strength Index (RSI) for HBAR is currently above the neutral mark at 50.0, which indicates positive market sentiment. This is generally seen as a bullish signal. However, historical instances show that HBAR has experienced corrections following sharp rises in the RSI, driven by volatile price movements.
This time, however, the market’s volatility appears to be much lower, suggesting that the current bullish momentum for HBAR is more organic. If the RSI remains steady in the positive zone, it could signal a more sustainable rally for the cryptocurrency.
HBAR’s performance also seems closely tied to Bitcoin’s price action, with a strong correlation of 0.93 between the two. As Bitcoin continues to rise, currently approaching $95,000, HBAR is likely to follow suit.
Given Bitcoin’s strong market position, any further gains for the leading cryptocurrency will likely spill over into altcoins like HBAR. If Bitcoin continues its bullish path, pushing past key resistance levels, HBAR could see similar gains, propelled by the overall market optimism and BTC’s positive influence.
Throughout April, HBAR has maintained an uptrend, which is crucial for its recovery from the 43% losses seen in March. The price action in April will be a pivotal factor for HBAR as it looks to regain lost ground. Maintaining this upward trajectory is essential for the altcoin to recover and build on its current momentum.
Currently trading at $0.183, HBAR is aiming to break the key resistance level of $0.200. This level represents a psychological barrier for investors, and successfully flipping it into support could trigger further bullish reactions. If this happens, HBAR could see a rise to $0.222 as investor confidence strengthens and more market participants enter the space.
However, if HBAR fails to breach the $0.200 mark, it could face a decline to $0.167. If this happens, further selling pressure from investors looking to minimize losses could push the price down to $0.154. Such a drop would invalidate the short-term bullish outlook, potentially leading to more significant losses if the market sentiment turns bearish.
