Research Summary

The report discusses the bullish momentum of Ethereum (ETH) and suggests a Call Butterfly Spread strategy for traders to potentially capitalize on the upward movement. It also mentions the SEC’s return of S-1 forms to ETF issuers, requiring refiling by July 8 before trading can begin.

Key Takeaways

SEC’s Return of S-1 Forms

  • SEC’s Comments: The U.S. Securities and Exchange Commission (SEC) has returned the S-1 forms to prospective ETF issuers with minor comments. These issuers are required to address these comments and refile their forms by July 8.
  • Next Steps: Another round of filings is expected before the ETFs can start trading. The approval of these forms depends on how quickly the SEC can review them.

Ethereum’s Bullish Momentum

  • Trend Line Breakout: ETH has broken from a key trend line, indicating bullish momentum. It has surpassed the pivotal level of $3,480.
  • Potential Resistance: ETH may face significant resistance at $3,700, which previously pushed the prices down to around $3,230.

Call Butterfly Spread Strategy

  • Strategy Structure: The strategy involves buying one Call at a lower strike price, selling two Calls with a higher strike price, and buying one Call with an even higher strike price.
  • Maximum Profit and Debit: The maximum profit from this strategy is $92/ETH, and the debit of the strategy is $8/ETH.

Actionable Insights

  • Monitor SEC’s Review Process: Keep an eye on the SEC’s review process of the S-1 forms. The approval of these forms will allow ETFs to start trading, potentially impacting the market.
  • Consider Call Butterfly Spread Strategy: If anticipating an upward movement in ETH prices, consider implementing a Call Butterfly Spread strategy. This strategy could potentially yield maximum profits if ETH price is at $3,700 when the options expire on July 12th.
  • Watch for Resistance Level: Be aware of the potential resistance at $3,700 for ETH. This level previously pushed the prices down, and it may pose a challenge for further upward movement.

Related Research