Ethereum (ETH) Price: Trader Bets $2 Million on June Rally as Bulls Battle Key Support

TLDR

A trader invested over $2 million in ETH call options betting on prices above $3,200-$3,400 by month-end Ethereum’s Pectra upgrade enhanced scalability and validator flexibility, boosting investor confidence ETH currently trades near $2,450, down 3% weekly after rejecting resistance at $2,745 Technical indicators show mixed signals with RSI recovering from oversold but momentum remains weak Critical support sits at $2,424 level with potential for deeper correction if broken

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Ethereum faces a critical juncture as a major trader places a multi-million dollar bet on a price surge while technical analysis reveals ongoing weakness. The contrasting signals highlight the uncertainty surrounding ETH’s near-term direction.

Ethereum (ETH) Price

On Thursday, a trader purchased 61,000 contracts of June-end expiry call options at strikes of $3,200 and $3,400, paying over $2 million in premiums according to Deribit data. This represents a bet that ETH will surge over 30% from current levels of around $2,460 within three weeks.

The bullish options flow comes as Ethereum recently implemented its Pectra upgrade on May 7. The upgrade raised the validator cap from 32 to 2,048 ETH and doubled blob throughput, enhancing both staking efficiency and Layer-2 scalability.

“The Pectra upgrade has been a key turning point,” said Youwei Yang, chief economist at BIT Mining. “By raising the validator cap and doubling blob throughput, Ethereum took a major step forward in both staking efficiency and Layer-2 scalability.”

The upgrade introduced features like EIP-7702, enabling regular wallets to leverage smart contract capabilities. This technical progress has attracted developers, users, and capital back into the ecosystem according to Yang.

Institutional Interest Growing

Institutional adoption signals are emerging beyond the options activity. SharpLink Gaming announced plans to move $425 million into Ethereum as a treasury reserve, marking a potential shift toward corporate ETH adoption similar to Bitcoin’s early institutional wave.

U.S.-based company SharpLink invested $425 million in #Ethereum, completely reshaping its business model. Learn how it transformed from an iGaming affiliate platform into a #blockchain-driven company.https://t.co/Exeho07AJW pic.twitter.com/QH6OpSGG7q

— dapp.expert (@Dappexpert) June 5, 2025

Speculation continues around potential approval of a spot ether ETF with staking mechanisms by U.S. regulators. Such approval would allow institutions to gain exposure to both price appreciation and staking yields, a feature currently missing from Bitcoin ETFs.

Technical Pressure Mounts

Despite the bullish developments, ETH faces immediate technical challenges. The price rejected resistance near $2,745 earlier this week, corresponding to the 0.5 Fibonacci retracement from the $1,385 low to $4,105 peak.

Source: TradingView

The rejection triggered a cascading drop back to the $2,420-$2,450 demand zone. This region aligns with the 0.382 Fibonacci level on weekly charts and currently serves as immediate support.

On shorter timeframes, Ethereum broke below its ascending trendline that supported May’s recovery. The breakdown below $2,520 and subsequent close beneath the 20- and 50-period exponential moving averages signaled a short-term bearish shift.

Mixed Momentum Signals

The Relative Strength Index on lower timeframes attempts recovery from oversold territory, currently around 43. However, it remains below the neutral 50 mark, suggesting continued vulnerability despite potential relief bounces.

Source: TradingView

The MACD histogram shows green on 30-minute charts, indicating a fresh bullish crossover. Yet weak volume and lack of decisive breakouts above moving averages limit conviction in the move.

Stochastic RSI has reached overbought levels again, raising likelihood of another pullback unless ETH sustains a breakout above $2,560. Price remains below the Ichimoku Cloud, with the cloud providing dynamic resistance near $2,515-$2,520.

The 200-period EMA near $2,424 acts as a critical make-or-break level for short-term trend control. A close below this level could extend losses toward $2,275 and $2,027 Fibonacci supports.

Critical Levels Ahead

The next 24-48 hours prove pivotal for Ethereum’s direction. A successful close above $2,540 would open paths toward $2,600-$2,655, where supply and trendline resistance cluster.

Failure to reclaim this range may keep the asset range-bound or push it toward deeper support zones. The weekly structure remains particularly important for sustainable recovery prospects.

Bollinger Bands on 4-hour charts show expanding volatility after price touched the lower band before rebounding. The lack of follow-through above the median line suggests active selling pressure persists.

If ETH holds above $2,424 through the weekend, it may provide foundation for recovery. Below this level risks slides toward $2,275 or $2,027, both representing historically important accumulation zones from earlier this year.

The contrast between the $2 million options bet and current technical weakness reflects broader market uncertainty as traders position for potential breakouts while managing downside risks.

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