Ethereum Nears All-Time High as Options Traders Target $5K Breakout

Ether (ETH) is closing in on its all-time high, with mounting bullish momentum in both the spot and derivatives markets signaling growing investor confidence in a $5,000 breakout.

The second-largest cryptocurrency by market cap rose to $4,670 in early Wednesday trade, marking a 26% monthly gain, according to CoinDesk data. The rally has energized options activity on Deribit, where over $5 million in premium has been spent on call options with a $5,000 strike expiring on Sept. 26, data from Amberdata shows.

Additional bullish positioning has emerged at the $5,500 and $6,000 strikes, with traders also deploying call spreads to manage risk. Paradigm reported that one participant placed a sizable December call bet at the $7,500 strike, underscoring longer-term bullish expectations.

Despite lagging Bitcoin and XRP in setting new cycle highs, analysts believe ether is poised to play catch-up.

“With sentiment around ETH still depressed and many sidelined, there’s significant room for upside,” said Greg Magadini, director of derivatives at Amberdata. “We’re watching for a push through $5,000 into price discovery, with $7,200 as a potential mid-range target if ETH/BTC reverts to 0.06 while BTC holds around $120K.”

Blockchain intelligence platform Santiment echoed this contrarian view, noting that retail traders have continued to sell into strength—often a bullish indicator.

“Historically, prices tend to move opposite retail sentiment,” Santiment noted on X. “While previous greed spikes in mid-June and late July led to corrections, the current environment shows widespread disbelief even as ETH posts higher highs.”

Santiment added that large stakeholders appear to be quietly accumulating ETH, absorbing supply from smaller holders and reducing resistance to further upside.

Ether now trades just 4.4% below its record high of $4,861 set in November 2021. While Bitcoin surpassed its 2021 peak last year and has since surged beyond $120,000, ETH has remained confined between $2,000 and $4,000 for much of the cycle—until now.