ETH Targets $5K Milestone Amid Surging Bullish Bets from Derivatives Traders

Ether Approaches Record High as Options Market Bets on $5K Breakout

Ethereum’s native token ETH is fast approaching its all-time high, buoyed by renewed momentum in both spot and derivatives markets, with traders positioning for a breakout above $5,000.

Over the past 24 hours, more than $5 million has been spent on call options at the $5,000 strike expiring Sept. 26, according to Amberdata. Ether is currently trading around $4,670, up 26% so far in August, as investor sentiment strengthens across the crypto sector.

Derivatives traders have also targeted higher strikes, including $5,500 and $6,000, while longer-dated options show increasing bullish conviction. According to OTC platform Paradigm, one participant bought December calls at the $7,500 strike, signaling expectations of sustained upside into year-end.

“ETH has significant room to catch up,” said Greg Magadini, Director of Derivatives at Amberdata. “With sentiment having been overwhelmingly bearish for months, a break above $5,000 could trigger a momentum shift toward $7,200 if ETH/BTC reverts to its 0.06 mid-range with BTC at $120K.”

Market data suggests that retail investors are still offloading ETH despite the rally. Blockchain analytics firm Santiment noted that ETH’s latest price surge is being met with continued skepticism from smaller traders—typically a contrarian bullish indicator.

“Past episodes of retail greed in June and July led to sharp corrections,” Santiment posted on X. “But now, with fear and disbelief dominating, the market appears primed for a sustained move higher.”

Santiment added that large players are quietly absorbing ETH supply, signaling confidence from key stakeholders as the token nears uncharted territory.

ETH is now just 4.4% below its November 2021 all-time high of $4,861. While Bitcoin breached its prior cycle peak in early 2024 and has since rallied into six-figure territory, ETH has until now remained range-bound between $2,000 and $4,000.

With strong technical momentum, institutional flows, and rising derivatives activity, traders are increasingly positioning for ETH to follow Bitcoin’s lead and enter price discovery.