- Ethereum will have its options expiry on Friday this week.
- The coin has a 15% upside ahead of this important event.
Ethereum price has moved sideways in the past few days as investors wait for the upcoming options expiry. The ETH coin was trading at $1,900 on Wednesday, where it has been in the past few days. This price is about 15% above the lowest level this month.
Options expiry upcoming
Ethereum has underperformed Bitcoin in the current crypto rally. While Bitcoin is hovering near the highest level since 2022, Ethereum is still sharply below the highest level this year. This performance is mostly because of the ongoing worries about the status of ETH in the eyes of regulators.
There are lingering concerns about whether Ethereum is a financial security or a digital commodity like Bitcoin. In a statement after the merge, Gary Gensler, the head of the Securities and Exchange Commission (SEC) warned that the coin could be seen as a security.
The main challenge is that Ethereum introduced staking. Staking is a process where people deposit their tokens with a centralized or decentralized exchange (DEX) and earn a return. Data compiled by StakingRewards shows that over $38 billion worth of Ethereum tokens have been staked.
A key part of SEC’s Coinbase lawsuit is that the company allows people to stake and generate a return in its platform. Therefore, there is a likelihood that the SEC will have a crackdown on staking if it wins its Coinbase lawsuit.
On the positive side, demand for liquid staking, which is often decentralized, is growing. Lido DAO, the biggest liquid staking company in the world, has over $13 billion worth of Ethereum in its ecosystem.
The next key catalyst for Ethereum price is the upcoming options expiry scheduled for Friday. Options are financial instruments that give investors a right but not an obligation to buy or sell at a fixed date. Data compiled by CoinGlass show that there are 2,480 calls compared to 1,093 puts. Historically, Ethereum tends to have some volatility before and after the options expiry.
Ethereum price prediction
The daily chart shows that the ETH price has been in a slow bullish trend in the past few months. It has moved above the ascending trendline shown in blue. This trendline has connected the lowest level since November last year.
The coin has moved above the 50-day and 100-day exponential moving averages (EMA). It has also moved above the important support level at $1,687, the highest level on November 6th last year.
Therefore, there is a likelihood that Ethereum crypto price will have a bullish breakout as buyers target the next key level at $2,138. This price is about 16% above the current level. It was also the highest point on April 16th.
