Ethereum (ETH) is once again in the spotlight as institutional traders bet on a major rally to $6,000 by December 26, fueled by strong momentum and rising optimism around spot ETFs and staking rewards. At the time of writing, ETH is trading at $2,490.24, following an 80% price surge since April.Traders Deploy Bull Call Spreads on $6,000 ETH TargetLast week, institutional and block-size traders executed bull call spread strategies on ETH, showing conviction that Ethereum will rally to at least $6,000 by the end of the year. The strategy involved:Buying $3,500 call optionsSelling $6,000 call optionsExpiration: December 26, 2025The trades were initiated on over-the-counter platform Paradigm and later listed on Deribit, totaling 30,000 contracts across 10 trades and costing over $7 million.This strategy yields maximum profit if ETH hits or exceeds $6,000, while losses are capped at the initial premium paid. However, gains are also capped above $6,000 due to the short call position.ETH Options Market Signals Aggressive Bullish SentimentEach contract represents one ETH, meaning this sizable position reflects institutional confidence in Ethereum’s potential to outperform in the second half of 2025. At current levels near $2,490, ETH would need to more than double for the spread to realize its full potential.Should ETH remain below $3,600 by expiry, the options will expire worthless, and traders would face a loss of the $7 million premium paid.ETH Up Over 80% Since April Amid Market ReboundEther’s strong performance in recent months has tracked broader crypto market gains. ETH rebounded from April lows of around $1,390 to nearly $2,500, driven by:Increased risk-on sentiment in global marketsGrowing institutional interestSpeculation over Ethereum spot ETFs with staking componentsAnalyst Greg Magadini commented that now is not the time to call a market top, stating:“I continue to like these upside trades, especially for the beat-up Ethereum. There’s a strong argument for ETH catching up as spot ETFs and staking rewards gain attention. No reason to call tops right now.”Can ETH Hit $6,000 by December?While the bull call spread strategy implies a high-confidence bet on ETH reaching $6,000, the risk-reward ratio is balanced by design. Upside is capped, but losses are limited—a sign of measured bullishness among institutional players rather than speculative mania.As regulatory clarity improves and ETF speculation intensifies, analysts say ETH may enter a “catch-up phase” relative to Bitcoin, with the $3,500–$6,000 options structure offering a strategic path for investors betting on that outcome.
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