ETH becomes the new store of value: Next target $3,200?

Ethereum (ETH) is drawing strong attention from Wall Street, as asset management firm Fidelity now views this altcoin as a store of value (SoV) and an alternative for preserving assets.

In the latest report, Fidelity stated:

“ETH is used to pay for all transactions on the Ethereum blockchain, regardless of the type of transaction… ETH can serve as a medium of exchange and a store of value.”

Fidelity also stated that blockchains possess a type of currency tied to ( Ethereum, which is ETH), and therefore should be compared to sovereign nations and their economies — not to Web 2 generation companies.

The company also emphasizes that ETH is the most actively traded asset on exchanges, while being the main asset used for collateral lending.

Market Reaction

The information above is seen as a positive signal and a “vote of confidence” for ETH. In 2024, ETH experienced a period of serious disconnection from the market and a divergence from Bitcoin.

At that time, this altcoin was under a lot of pressure because it was not seen as a store of value like BTC. ETH had dropped nearly 70% compared to BTC and even lagged behind Solana (SOL).

Therefore, the report from Fidelity was warmly received by the Ethereum community. An Ethereum educator named Sassal responded that this report is a “bullish” signal, while also suggesting that ETH is undervalued:

“ETH is an asset worth 100 trillion dollars but is currently trading at 316 billion dollars.”

Recently, many analysts have made bullish predictions for ETH, amid expectations of a stablecoin boom and the development of the on-chain stock market (.

Right after Fidelity’s report, market sentiment towards ETH has risen to a “greed” level, and the price of ETH also jumped 2.8% to $2,600. Currently, the price continues to rise 6% on the day and is trading at $2,770.

Overall, the increasing optimistic sentiment has helped ETH surpass BTC in daily trading volume and speculative interest, according to data from CoinGlass.

!)[eth]https://img-cdn.gateio.im/webp-social/moments-28bf19b5d1612bc8d0be21e86ffda9e6.webp(Source: CoinGlassNotably, the open interest ratio )OI( of ETH has increased by 7%, while that of BTC has slightly decreased by 0.18%. This indicates strong demand for ETH in the futures market.

During the same period, the trading volume of ETH derivatives surged to 59 billion dollars – about 3 billion dollars higher than BTC. If this trend continues, ETH could surpass BTC in the short term in terms of investment returns.

In addition, the market skew ) for the end of Q3 also shows a bullish trend, with a Put/Call ratio of 0.44 – reflecting a clear dominance of Call ( bullish bets compared to Put ) bearish bets.

!()https://img-cdn.gateio.im/webp-social/moments-b56fa987a2011ac19ef965f16262f1d1.webp(Open contracts at strike price | Source: DeribitMost bullish targets are situated at $2,800 and $3,200, while the “maximum pain point” )potential floor price, where options contracts expire worthless[eth] is identified around the $2,000 mark.

Overall, ETH may still be capped below the $3,000 threshold in Q3, but options traders are still betting on the possibility of a breakout.

Minh Anh