XRP has recently struggled to break through key resistance at $2.56, a level that the crypto token’s price has failed to surpass twice this month. This barrier remains the final hurdle on its path to $3.00.
However, despite showing some positive movement, the altcoin’s failure to break this resistance could signal a continued consolidation phase, especially given the current market conditions.
XRP Investors Are Uncertain
The Network Value to Transaction (NVT) Ratio for XRP has reached a five-year high, a level not seen since January 2020. This metric compares a cryptocurrency’s market capitalization to the volume of transactions conducted on its network.
A high NVT ratio indicates that while investors are bullish, their optimism is not translating into actual growth or usage of the network. This disparity typically signals an overheated market, which often corrects as the excitement cools off.
The current NVT ratio suggests that XRP’s value is outpacing its transaction activity, which is a bearish signal. As the market cools, this imbalance could lead to a price correction, further hindering XRP’s attempts to break through key resistance levels.
XRP’s macro momentum is also showing signs of strain. The network’s growth is currently at a four-month low, reflecting a decline in the rate at which new addresses are created.
This is a critical metric for assessing a cryptocurrency’s traction in the market, as a growing number of active addresses usually indicates increased adoption.
In XRP’s case, the lack of new address creation suggests that the altcoin is struggling to attract new investors. The lack of incentive for new investors to join the network further dampens XRP’s outlook.
XRP is currently trading at $2.40, just below the resistance of $2.56. This level has proven to be a strong barrier, with XRP failing to breach it twice this month.
As a result, the altcoin is likely to continue consolidating between the $2.27 and $2.56 range. This period of consolidation may persist if the market conditions remain unchanged.
Should bearish conditions worsen, XRP could slide below its support at $2.27. In this case, the price may fall to $2.14 or lower, erasing much of the recent recovery from the $2.00 level.
The continuation of this downward movement would reinforce the bearish outlook.
However, if XRP can breach the $2.56 resistance and flip it into support, the bearish thesis would be invalidated. A successful breakout could push XRP toward $2.95 and, ultimately, the $3.00 mark.
This would require strong support from investors and a more favorable market environment to sustain the upward momentum.
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 climbed over 15% in the past week, continuing to push higher despite a 27% drop in trading volume over the last 24 hours. While momentum indicators and whale activity still lean bullish, signs of consolidation are emerging as ADA trades near key support and resistance levels.
Whether ADA breaks higher or pulls back may depend on how it reacts to the critical $0.668–$0.709 range in the coming days.
Is Cardano’s Rally Losing Steam or Just Catching Its Breath?
Cardano Average Directional Index (ADX) is currently at 30.17, easing slightly from yesterday’s 32.76 after a sharp surge from 14.90 two days ago.
Despite the minor pullback in ADX, ADA remains firmly in an uptrend, indicating that bullish momentum is still present, though perhaps cooling slightly after an intense acceleration.
The ADX is a trend strength indicator that ranges from 0 to 100. It does not indicate direction—only the strength of a trend. Readings below 20 suggest a weak or non-existent trend, while values above 25 typically confirm a strong trend.
ADA’s current ADX at 30.17 reflects a healthy uptrend still in play, although the slight dip may suggest the trend’s momentum is stabilizing rather than accelerating.
As long as ADA maintains this level, the uptrend remains intact, but traders should watch for any further decline in ADX that could hint at waning strength.
Cardano Whales Return—Is Accumulation Back On?
The number of Cardano whale addresses—wallets holding between 1 million and 10 million ADA—has slightly increased to 2,408, up from 2,405 on April 22.
This follows a brief decline from 2,421 on April 20, suggesting a small but notable return of larger holders after a short distribution period.
While the change may seem minimal, it marks a potential shift in sentiment among high-stake investors, who often play a key role in driving price trends due to the sheer volume of assets they control.
Addresses Holding Between 1 Million and 10 Million ADA. Source: Santiment.
Tracking whale activity is crucial because these large holders can significantly influence the market. When whales accumulate, it’s often viewed as a sign of confidence and can act as a leading indicator of upward price movement.
Conversely, when whales begin to offload their holdings, it may signal weakening conviction or an expectation of short-term price drops.
The recent uptick from 2,405 to 2,408 may indicate a renewed interest among whales in accumulating ADA, hinting at a possible rebound or continued strength in price—especially if this trend continues.
ADA’s Uptrend Holds, But Key Support Must Survive
According to its EMA lines, Cardano price remains in an uptrend, with short-term moving averages still above the long-term ones—a classic sign of sustained bullish momentum.
This alignment suggests the broader trend favors the bulls despite recent price consolidation.
However, ADA is trading within a tight range, facing resistance at $0.709 and supported at $0.668, setting the stage for a potential breakout or breakdown.
If the $0.668 support is tested and fails, ADA could decline toward the next support level at $0.634, and a deeper slide might push it down to $0.59, marking a more significant correction.
Conversely, a clean break above $0.709 resistance would likely trigger renewed bullish momentum, with the next upside target around $0.77.
