XRP is currently showing signs of weakness after its recent rally, and technical signals show that the token could be preparing for a deeper pullback. While the price remains above important support levels, chart patterns and broader market conditions are flashing early warning signs.
Bearish Divergence on the Weekly Chart
On the weekly timeframe, a bearish divergence is forming. While XRP’s price has made higher highs, the Relative Strength Index (RSI) is printing lower highs. This kind of divergence is often a hint that momentum is slowing down. Although this signal hasn’t been confirmed yet, if it does in the coming weeks or months, XRP may face a stronger correction.
According to analyst Josh of Crypto World, support lies around the $3.00 mark, while the next major resistance is between $4.60 and $4.70. These zones are based on Fibonacci levels, which are commonly used to predict where prices could reverse.
Daily Chart Shows Breakdown Signs
On the daily chart, XRP is struggling to hold the $3.30–$3.40 range, which recently acted as strong support. If the price closes below $3.30 and fails to recover, this could confirm a bearish shift in short-term trend. In that case, XRP may head toward $3.00 or even $2.95.
The 38.2% Fibonacci retracement level around $2.95 is a critical support area during market corrections. If this level holds, XRP could bounce. But if the price drops below $2.75 and then $2.65, a retest of April’s lows becomes possible.
Broader Market Impact
XRP is not alone. Ethereum is facing resistance and showing short-term bearish divergence, while Bitcoin struggles to break higher. Bitcoin dominance has also ticked upward, often a bearish signal for altcoins. This overall market pressure is affecting XRP’s outlook in the near term.
For now, XRP needs to hold above $2.75 to keep hopes of a continued rally alive. If it manages to reclaim $3.36, the correction might be over.
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.
South Korean presidential candidates are making Bitcoin ETF approvals a central campaign promise as they compete for the support of the country’s substantial cryptocurrency voting bloc ahead of the June 3 election. Democratic Party leader Lee Jae-myung announced on May 6 his commitment to legalizing spot crypto ETFs, alongside promises to lower transaction fees and enhance consumer protections.
Candidates eye 16m crypto vote bank with Bitcoin ETF promises
The race to secure support from South Korea’s massive cryptocurrency voting bloc has intensified as presidential candidates recognize the electoral power of the country’s 16 million crypto investors. As per research published by Point Daily, these investors make up almost 36% of the 44.25 million eligible voters in South Korea.
Because of how widely used cryptocurrencies are in South Korea, crypto policy has become a key campaign issue. In Korea, the market value of bitcoin has surpassed 2,600 trillion won. It is currently on par with the total worth of all businesses included in the Korea Composite Stock Price Index (KOSPI).
The ruling People Power Party has shared seven major crypto-related initiatives on its platform. These include eliminating the one-exchange-one-bank arrangement, making it official for corporations to trade virtual assets, allowing spot trading of Bitcoin ETFs within the year, and making South Korea a global center for virtual assets.
Democratic Party leader Lee Jae-myung’s May 6 announcement marked his first mention of cryptocurrency policy during the campaign. Lee framed his crypto-friendly proposals as part of a plan to provide better investment opportunities for Korea’s youth. He stated, “I will create a safe investment environment so that young people can [build] assets and plan for the future,” according to The Korea Economic Daily.
Lee’s Democratic Party currently leads in the polls with 42% support, based on a survey conducted by Korea’s National Barometer Survey between April 24 and 30. The acting president, Han Duck-soo, trails with just 13% support. In addition, with both major parties now actively courting crypto voters, Bitcoin ETF approval has surfaced as a common promise in their respective platforms.
Candidates promise crypto reforms to get votes
South Korea’s existing regulatory environment for cryptocurrency includes a number of restrictions that both of the top contenders are now vowing to alter. Perhaps the most controversial policy is the “one-exchange-one-bank” policy. This policy restricts cryptocurrency exchanges from relying on a single bank for real-name verification services. The policy has been criticized for inhibiting market competition and restricting user choice.
The People Power Party has also pledged to eliminate this regulation as part of its seven flagship crypto initiatives. Institutionalizing corporate virtual asset trading is also on its agenda. This would allow corporations to deal more directly with the cryptocurrency market.
Lee Jae-myung’s proposals cover spot Bitcoin ETFs, lower transaction fees, and implement stronger consumer protections. His announcement contained limited information on when things will commence.
Commitments by both sides to the approval of spot Bitcoin ETFs would align South Korea with other major economies like the United States, which approved spot Bitcoin ETFs. In addition, this regulatory alignment would most likely trigger institutional investment in cryptocurrencies in South Korea. Crypto ETFs are becoming extremely popular in the United States. As per a recent rumor, Binance founder CZ was reportedly involved in the Binance Coin ETF filing.
In one of the recent filings, Bitwise also filed for a NEAR ETF with the US SEC. This has been a common pattern with the surge in altcoin ETF filings.
Despite political controversies surrounding the Trump Gala Dinner event, the crypto market has recently witnessed a significant accumulation wave of the TRUMP token, a meme coin associated with the Trump family.
These activities reflect strong interest from major investors, often called “whales,” and highlight the TRUMP token’s growth potential amidst a volatile market.
Whales’ accumulation to secure VIP tickets
The accumulation trend for the TRUMP token gained momentum as large investors consistently executed noteworthy transactions.
On April 28, 2025, a whale withdrew 190,987 TRUMP tokens from Binance, increasing its total holdings to 1.389 million tokens, equivalent to $20.59 million. This investor, known by the alias “MeCo,” currently holds the second position among the top holders vying for a spot at the Trump Gala Dinner, trailing only Justin Sun.
On the same day, another whale bolstered its holdings by adding 92,460 TRUMP tokens, belonging to the top 125 holders.
Before that, on April 27, a savvy trader swapped 1.18 million Fartcoins for 78,671 TRUMP tokens. Moving to April 26, a prominent whale reinvested early profits and additional funds, purchasing $5.73 million worth of TRUMP tokens.
These transactions reveal a clear trend: major investors are accumulating TRUMP tokens to secure their spots at the Trump Gala Dinner, an exclusive event reserved for top token holders.
Challenges starting
Despite these activities, TRUMP has shown positive performance signals in the market. According to data from BeInCrypto, the price of TRUMP surged by 84% over the past seven days, outpacing many other cryptocurrencies.
The spot trading volume of TRUMP on Binance also skyrocketed by 202% within nine days. However, despite these positive indicators, the Trump Gala Dinner has sparked intense political controversy.
On April 25, 2025, two US Senators, Adam Schiff and Elizabeth Warren, sent a letter to the U.S. Office of Government Ethics. They called for an investigation into the event because they believed it violated federal ethics regulations.
The Senators expressed concerns that the event could constitute a “pay-to-play” scheme. Investors pay for political access, as Trump promised a private dinner on May 22, 2025, for the top.
Following this announcement, the TRUMP token’s value surged over $100 million. This raised suspicions that the Trump family might leverage their political influence for profit.
Schiff and Warren also questioned whether Trump or his family had received guidance on profiting from digital assets during his tenure. And what safeguards exist to prevent the purchase of political access through TRUMP token investments?
First, Donald Trump launches a memecoin, netting himself billions.
Next, his family gets in on the scheme.
Now his billionaire buddies are getting even richer too.
This controversy has sparked broader questions about the intersection of cryptocurrency and politics, particularly as more public figures engage with the crypto market.
Furthermore, as previously reported by BeInCrypto, there is speculation that Trump might use the Trump Gala Dinner to promote a new NFT project.
In summary, the accumulation wave of TRUMP tokens to attend the Trump Gala Dinner shows this meme coin’s strong financial appeal due to its social and political significance. Positive price and trading volume data reinforce investor confidence in TRUMP’s growth potential.
However, the political controversies surrounding the event also introduce significant risks. Investors should remain vigilant, closely monitoring market developments and related legal factors.
