Fun

Can ETH price crack $3.5K? Ethereum ETF debut will precede new highs, analysts say

News Feed - 2024-07-20 01:07:12

Zoltan Vardai7 hours agoCan ETH price crack $3.5K? Ethereum ETF debut will precede new highs, analysts sayEther could set a new all-time high after the debut of the first spot Ether ETFs, but $3,500 remains a significant resistance line to cross.4977 Total views4 Total sharesListen to article 0:00Markets NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksEther’s price could be on track to reach a new all-time high as the industry is about to witness the launch of the first spot Ether exchange-traded funds (ETFs), which could occur as soon as next week.Ether could hit a new all-time high after next week’s ETH ETF launch


Ether’s (ETH) price could be on track to a new all-time high after the launch of the first United States spot Ether ETFs, according to Matt Hougan, chief investment officer of Bitwise.


Hougan cited three main reasons for Ether reaching a new all-time high, including ETH’s inflation rate, the fact that Ether stakers aren’t selling like Bitcoin (BTC) miners and that 28% of Ether supply is already out of the market.


In a July 16 blog post, Hougan wrote:“Ethereum’s inflation rate over the past year is exactly 0% [...] Significant new demand meets 0% new supply? I like that math. And if activity on Ethereum ticks up, so does the amount of ETH being consumed. That’s another lever of organic demand working in investors’ favor.”


Other factors also point to an incoming rally, including the number of Ether withdrawals from centralized exchanges, according to crypto analyst Leon Waidmann.


The analyst wrote in a July 19 X post:“$126M worth of ETH was withdrawn from exchanges this week, signaling massive accumulation ahead of the ETF launch. Next big ETH rally incoming.”ETH: Balance on exchanges (total). Source: Leon Waidmann$3,500 remains formidable resistance


However, Ether futures suggest little confidence in the chance of Ether breaking above the $4,000 mark in the short term, as the $3,500 mark remains a significant resistance zone.


Ether’s relative strength index (RSI) also suggests that Ether’s price needs to cool down before rallying to a new all-time high. On the daily chart, Ether’s RSI rose to 58, which suggests that the asset is not yet overbought but is trading above its fair value, according to TradingView data.ETH/USD, RSI, 1-day chart. Source: TradingView


The RSI is a popular momentum indicator used to measure whether an asset is oversold or overbought based on the magnitude of recent price changes.


Related:Bitcoin analysts say 74K is the next stop for BTC priceEthereum shakeout could happen first


Ether’s price could first see a sell-the-news event after the initial ETF launch before starting its sustained rally toward new all-time highs.


Hence, the real opportunity to invest in Ether long term could come after the first few weeks of the ETF debut, according to Alvin Kan, chief operating officer of Bitget Wallet.


Kan told Cointelegraph:“Similar to how the market reacted when BTC spot ETFs got approved, we expect ETH to jump in price for a short time after its own ETF gets the green light. However, there might be followed by some selling pressure for a week or two afterward, as a result of outflows from instruments like Grayscale’s ETF.”


ETH’s price will be able to climb in a more sustained manner after the initial shakeout, added Kan:“Once this initial shakeout is over, the price of ETH could start to climb steadily each month, depending on the daily inflows into the new ETH spot ETF.”


Other analysts expect the Ether ETF to have wider ramifications on the altcoin market. For instance, popular crypto trader Mikybull expects the ETFs to catalyze the next altcoin bull market cycle.


The trader wrote in a July 19 X post:“ETH ETFs will be the major catalyst for a massive rally sparking a huge Alts season in this cycle.”ETH/USD, 2-month chart. Source: Mikybull


Ether’s price rallied over 11% during the past week, but ETH is still trading 29% below its old all-time high of $4,890 reached in November 2021.


Related:Bitcoin bears trapped, but can BTC price surpass $70K by August?


This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.# Altcoin# Ethereum# Adoption# Markets# Ether Price# Ethereum Price# Ethereum ETFAdd reaction

News Feed

Dogecoin Price Tests Panic Zone At $0.21, Breakdown Could Lead To Price Crash
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Ethereum Attempts Key Breakout: Analysts Set Next Target As ETH Reclaims $3,200
Este artículo también está disponible en español. Ethereum (ETH) price is finally moving after a week of sideways movement. In the last hour, the second-largest crypto ha
US Treasury Secretary and Indian Finance Minister Discuss Crypto Regulation
US Treasury Secretary and Indian Finance Minister Discuss Crypto Regulation U.S. Treasury Secretary Janet Yellen and Indian Finance Minister Nirmala Sitharaman discussed crypto reg
What’s Behind Bitcoin And Ethereum’s Exchange Exodus? Record-Low Reserves Could Hold The Key
Este artículo también está disponible en español. Crypto investors are not keen on dealing with cryptocurrency trading platforms, which has resulted in the dwindling exch
Stripe Integrates Stablecoins and AI Technology – Will AI Agent Coins Like $MIND Benefit?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Into the Gaming Metaverse: Cardania Launches on KICK․IO Starting February 15
Into the Gaming Metaverse: Cardania Launches on KICK․IO Starting February 15 press release PRESS RELEASE. Gaming is quickly becoming less about games and more about people.
Ana Paula Pereira6 hours agoCosmos Hub upgrades to offer liquid stakingThe upgrade introduces a liquid staking module, eliminating a 21-day locking period applied for unstaked ATOM tokens.1005 Total views29 Total sharesL
Elisha Owusu Akyaw7 hours agoIs Web3 messaging going to replace WhatsApp and iMessage? Co-founder of XMTP explainsThe co-founder of XMTP, Shane Mac, is optimistic that Web3 messaging will play a critical role in bringing
Is Dogecoin copying the 2020 fractal that sent DOGE price soaring 15,800%?
Yashu Gola8 hours agoIs Dogecoin copying the 2020 fractal that sent DOGE price soaring 15,800%?DOGE"s bullish fractal also gains support from expectations of interest rate cuts, the upcoming Bitcoin halving, and Elon Mus
Study: 60% of Digital Asset Holders Store Funds on Exchanges While Half Derive an Income From Crypto
Study: 60% of Digital Asset Holders Store Funds on Exchanges While Half Derive an Income From Crypto Despite the risks that come with storing crypto assets with
Tom Mitchelhill3 hours agoBitcoin ETFs or not, don’t expect a ‘sexy’ crypto bull run — Concordium founderExperts remain divided on when the next bull market is set to kick off, but they all agree on one thing: Th
Anonymous Says It Hacked Bank of Russia, Monetary Authority Denies Claim
Anonymous Says It Hacked Bank of Russia, Monetary Authority Denies Claim Anonymous has attacked the Central Bank of Russia (CBR), according to a post on social media. The hacking g