Why Ethereum Traders Are More Optimistic Than Bitcoin Traders
Recent market trends reveal an intriguing divergence between Ethereum and Bitcoin traders. Data shows that Ethereum options traders exhibit a more optimistic outlook compared to Bitcoin counterparts. This shift is attributed to Ethereum’s recent Fusaka upgrade, macroeconomic factors, and strategic purchasing by prominent entities.
The Significance of Ethereum’s Performance
According to options data, Ethereum’s 90-day skew sits at -2.8%, significantly less bearish than Bitcoin’s -4%. This indicates that traders foresee less short-term downside risk for Ethereum compared to Bitcoin. Spot price performance supports this trend: Ethereum currently trades around $3,100, down 3% year-to-date, while Bitcoin’s year-to-date losses are closer to 6%.
In the options market, longer-dated ETH contracts are showing signs of reduced bearishness. For instance, Ethereum’s put-call ratio is improving, with short-dated options briefly turning bullish—a first since late October 2025.
What’s Driving This Bullish Sentiment?
The elevated sentiment around Ethereum is driven by several key factors:
- The Fusaka Upgrade: This network upgrade has improved Ethereum’s layer-2 efficiency, enhancing the blockchain’s scalability and adoption for various use cases.
- Macro Trends: Analysts predict that dovish monetary policies from the Federal Reserve could result in rate cuts, fostering a more favorable environment for crypto assets.
- Strategic Accumulation: Entities like BitMine have made significant ETH purchases, signaling institutional confidence in Ethereum’s long-term potential.
Despite these positive trends, analysts urge caution. The crypto market remains far from the bullish environment seen at the start of Q4 2025, and sustained inflows into Ethereum-focused exchange-traded funds (ETFs) are lacking.
Historical Parallels
Thahbib Rahman, a research analyst at Block Scholes, highlighted parallels to May 2025, when Ethereum witnessed a similar sentiment reversal. Back then, a combination of favorable macroeconomic conditions, the Pectra upgrade, and robust ETF inflows contributed to a significant rally. He notes that Ethereum could follow a similar trajectory if spot ETFs see a surge in inflows.
How to Invest in Ethereum: Tools for Beginners
If you’re looking to invest in Ethereum, consider buying ETH from trusted platforms like Coinbase or Binance. Furthermore, storing your Ethereum safely is crucial. Products like the Ledger Nano X hardware wallet ensure your assets remain secure from cyber threats.
A Balanced Outlook
While Ethereum is showing signs of reduced bearish sentiment, analysts stress that the market is not yet positioned for a dramatic rally. Retail traders on platforms like Myriad remain more cautious about Ethereum compared to Bitcoin, assigning lower probabilities for Ethereum to reach new highs in the short term.
Conclusion: A Promising Yet Cautious Outlook for Ethereum
Ethereum is standing out as the more optimistic choice for traders when compared to Bitcoin. Key upgrades like Fusaka, strategic purchases by institutional players, and improving macroeconomic factors indicate Ethereum’s bounce-back potential. However, the market still lacks the sustained momentum needed for a major rally.
