Ethereum lately is on positive price action, with the cryptocurrency nearing its all-time high of $1,440, last seen during 2018. Analysts suggest that the strike price of a December ETH option reveals that Ether could reach as high as $10,000 before the end of 2021. The cryptocurrency currently sits at $1,200 at the time of writing.
Ethereum Options Contract Could Reach $10,000 in 2021
The Ethereum network has gone under the spotlight throughout 2020. With the blooming DeFi summer of 2020, the pressure on the Ethereum blockchain has gotten more intense. Issues of scalability and higher gas fees on the network have also pressurized on the network.
Even though a second layer has been developed on the network, the root issues have not been completely erased. Prior to Eth2, Ethereum was capable of processing less than 20 transactions per second. Post Eth2, Ethereum will be able to process thousands of transactions per second. However, that would only be possible with additional technologies such as sharding.
Despite all these, the Ethereum network has continued to only grow along with its price.
During the past week, Ethereum’s price has increased by 45%. At the time of publication, ETH is currently hovering around $1,200. While the cryptocurrency has not yet exceeded the all-time high of $1,400, a similar kind of price action was last seen in January 2018.
Bitcoin Options Contract Too Showed Similar Patterns
Over the past three months, Ether options grew by 150% to a total of $880 million. This build-up occurred as the Ether broke the $700 resistance to reach its highest price since May 2018.
Deribit had recently revealed the strike price for its Ethereum December 2021 options contract. Options are a type of crypto derivative product in addition to future trading and CFDs.
We've introduced the $ETH 10k strike in the Dec21 expiry! 🚀
— Deribit (@DeribitExchange) January 6, 2021
Earlier in 2020, the Bitcoin options contract had a strike price of over $20,000. Eventually, the cryptocurrency price exceeded that price level.
The same could suggest for Ethereum as well, with its own four digital valuations. Even though, climbing from $1000 to $10,000 in a single year doesn’t sound reasonable. Bitcoin had a similar price action pattern in 2017.