Ethereum’s rally above $300 is due to bullish sentiments in the cryptocurrency markets and rising interest in Eth options market. As price claimed $309, the cryptocurrency topped 2020 high.
The Eth options market is one of the major reasons why the price is going upward. Deribit Insights said:
“ETH option volumes break all-time notional value highs, with 3:2 Call. Puts traded, 1m vol jumps from 52% to 67%, Call skew indicating upside Calls in demand across maturities. BTC 1m vol at 50%, and has not justified the same response, as ETH spot massively outperformed BTC.”
Normally, at the end of the week traders try to remain away from the markets due to high volatility, but traders’ interest in cryptocurrency besides weekend signals towards a bullish breakout.
DeFi Funds Reached $4 Billion
The funds into DeFi platforms have been surged to an unprecedented limit from $1billion at the start of the year to the current value of $4 billion. Due to the interest of people in decentralized finance protocols, the demand of Eth has surged significantly. CoinGecko’s COO Bobby Ong said:
“Persistently high gas price on Ethereum is here to stay until the scalability solutions that everyone has been talking about are implemented. 100 gwei transactions are here to stay for some time. DeFi yield farming is crowding out ALL other non-DeFi activity on Ethereum.”
As the number of transactions over Ethereum network has been increased, the miners’ revenue has also jumped.
“Ethereum miner revenue from fees is surging and at an all-time high (7d MA). On the hourly chart, we’re seeing that currently more than a third of the #ETH miner revenue comes from fees rather than block subsidy – up from less than 5% in April, Glassnode added.
As Bitcoin has influenced all over the altcoins, and so Ethereum price also affect by Bitcoin’s price.
Currently, Ethereum is trading at $303.6 with a 7.15% change in the past 24-hours.