#ETHBreaksATH Will ETH reach $5,000 after the options expiration on Friday?

$5 billion in ETH options expire on Friday, which could open the door for bulls to surpass the $5,000 barrier.

Will ETH reach $5,000 after the options expiration on Friday?

Market Analysis

Key Points:

Bullish strategies dominate the expiration of $5 billion in Ether options, giving traders an edge if prices rise.

Most neutral to bearish strategies failed below $4,600, leaving traders exposed as Ether recovered in August.

The expiration of $5 billion in Ether options

ETH

€3898

on Friday could mark a turning point for the cryptocurrency, as bullish strategies are now better positioned after a 22% price gain in 30 days. The event could provide the necessary momentum to push Ether above $5,000, although investors' attention remains on the Nvidia (NVDA) earnings expected this Wednesday.

The current market capitalization of Ether at $557 billion places it among the 30 largest tradable assets, ahead of giants like Mastercard (MA) and Exxon Mobil (XOM). While there is debate over whether Ether should be compared to stocks, its historical correlation with the S&P 500 suggests that traders apply a similar risk assessment to both assets.

ETH/USD vs. S&P 500 40-day rolling correlation index. Source: TradingView / Cointelegraph

A correlation above 80% indicates that the price of Ether has closely mirrored the movements of the S&P 500, although the relationship briefly reversed during a two-week period at the end of July. As a result, Ether traders have reasons to monitor corporate earnings, particularly in the artificial intelligence sector, which has been a significant driver for the stock index.