As a seasoned crypto investor with several years of experience in the market, I’ve seen my fair share of price movements and regulatory announcements. Based on my observations and analysis of the current situation, I believe Ethereum (ETH) investors should be cautious about the upcoming ETF approval and its potential impact on the second-largest cryptocurrency.
During the market downturn, crypto analysts speculate that Ethereum (ETH) could challenge its crucial resistance levels once more. At the same time, investors eagerly await developments regarding Ethereum’s second largest cryptocurrency status as the approval process for ETH-backed spot Exchange-Traded Funds (ETFs) nears completion.
Is Ethereum ETFs Approval Already Priced In?
The imminent green light for trading Ethereum ETFs on the spot market is sparking debate among crypto investors regarding its potential influence on Ethereum’s value. However, renowned investor Daan Crypto Trades holds a differing opinion, asserting that the approval of the S-1 form will not impact Ethereum’s price.
According to the trader’s perspective, the upcoming announcement is expected to have a similar impact as the 19b-4 approval for Ethereum ETFs that was announced in May. Approximately two months ago, rumors about the SEC’s decision regarding Ethereum ETFs sparked a significant surge in Ethereum’s price.
The leading altcoin experienced a significant surge of more than 30%, rising from $3,000 to $3,900, in the days leading up to the announcement. Yet, despite the highly anticipated event, the token’s price remained unchanged following the official announcement.
To Dan, the SEC’s approval won’t have a significant impact on the market sentiment since it’s already widely anticipated. Analysts believe that the true indication will come from the trading volume once the ETFs are launched.
Additionally, the trader anticipates a significant amount of withdrawals from the Grayscale Ethereum Trust (ETHE), although not to the extent experienced with GBTC. Regarding Ethereum ETF demand, the crypto investor indicated that approximately 20% of inflows into Bitcoin spot ETFs are projected.
It’s anticipated that ETH will receive between 10-30% of the inflows that Bitcoin experienced. I believe a reasonable estimate would be around 20%. A larger inflow would certainly be welcome news. However, Ethereum doesn’t require as much investment to significantly impact its price due to its smaller market cap and large amounts of tokens locked up in staking and decentralized finance (DeFi) platforms.
ETH 3x Rally In The Next Year
Crypto expert Jelle believes Ethereum may challenge previous resistance points again. The second-largest digital currency is regaining the 200-day moving average, and Ethereum ETFs are rapidly approaching.
According to the article’s content, if Ethereum manages to maintain its current level, there is a possibility that it may reach the $4,000 price mark. The analyst believes that Ethereum will surpass Bitcoin’s performance during the upcoming weeks. In his perspective, Bitcoin is predicted to exhibit a “unexceptional next few weeks,” moving laterally without significant price movements.
Jelle emphasized that skeptics about Ethereum are underestimating its potential, stating, “Just like every previous cycle, those who declare Ethereum ‘dead technology’ will eventually be proved wrong.”
The price of Ethereum (ETH) has risen by 5.4% over the past week, now standing at $3,121. Although it experienced a 13% decline in value during the last month, certain market observers hold that Ethereum’s current price represents an excellent buying opportunity. As expressed by pseudonymous crypto analyst Poseidon, “Anything around or below the $3,000 mark is essentially ‘free’ for potential 3x gains within the next year.”
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2024-07-13 02:46