Data compiled from options traders points towards a general consensus that ethereum will reach $500 by the end of the next month.
According to a report by the International Business Times, ETH traders are confident the price will continue to appreciate after reaching $420 in the spot market. Futures on ethereum have grown 250 percent over the last three months while options data suggest that traders are bullishly trending towards ETH reaching $500 soon.
The report reads:
Comparing ETH future’s contract price against the spot price indicates a 20% annualized premium, which suggests that traders are confident of ETH price appreciation in the spot market.
Money backing the $500 price level indicates it would be feasible for ethereum to reach its target within 40 days. The report points to the surge in popularity for decentralized finance, with most projects currently operating on the ethereum network. Gas prices, which serve as transaction fees, have also been on the rise, signaling the network’s current demand.
In a tweet published August 1, BitMEX co-founder and CEO Arthur Hayes predicted ethereum would reach $500 “soon.”
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