Ethereum Options Frenzy: Bullish Traders Fuel Record $13.75B Bet on ETH’s Future

Wall Street's gambling addiction just found a new crypto outlet. Ethereum options open interest just hit a staggering $13.75 billion—and the bulls are loading up like it's 2021 all over again.

The smart money's play? Traders are piling into calls, betting big on ETH's next leg up. Never mind that most options traders lose money—this time it's different, right?

Meanwhile, traditional finance guys are still trying to figure out how to short NFTs. Some things never change.

The surge reflects a sharp rise in derivative activity as traders position themselves for potential price movements. Options provide a way for investors to gain exposure to Ethereum’s future price swings or hedge against losses while maintaining their ETH holdings.

This makes options attractive for institutional players and sophisticated trading desks seeking to execute more advanced strategies. Market data from Deribit reveals that most ETH positions are skewed toward bullish bets, with calls dominating over puts.

Significant spikes in open interest are visible at strike prices of $4,000, $5,000, and $6,200, indicating that traders are placing large bullish bets, nearly $2 billion in total, on these levels.

This bullish sentiment comes as ethereum has surged by approximately 18.5% over the past week, pushing the price above $4,000.

The ongoing rally has spurred traders to lock positions ahead of potential gains, fueling the upward momentum.