Ethereum (ETH)’s struggles to regain the last cycle’s heights have brewed a bearish sentiment among some sectors of the crypto community. Its performance during Q2 has seemingly continued to fuel the sentiment. However, with rumors of an ETH ETF (Exchange-Traded Fund) approval being around the corner, analysts believe the ‘King of Altcoins’ is about to hit the “ETH season.” Related Reading: Bitwise CIO Expects $15 Billion To Flow Into Spot Ethereum ETFs, How Will ETH React? Will Ethereum Spot ETF Come Next Week? On Wednesday, Reuters revealed sources close to some investment firms believe that Ethereum ETFs will be approved next week. The rumors follow the Securities and Exchange Commission (SEC) Chair, Gary Gensler, comments regarding the investment products’ approval. Earlier this week, Gensler spoke at the Bloomberg Invest Summit, revealing that the approval process is “working smoothly.” The launch of the highly anticipated products is expected to come this summer and could be as early as July. According to Reuters, industry executives and lawyers involved with the applicants believe the Ethereum ETF could be approved within the next two weeks. Per the report, the ETH approval could come as soon as July 4. A month ago, ETH’s price soared by over 30% in anticipation of an SEC’s approval, going from the $3,000 mark to the $3,900 price range. Since then, the second-largest cryptocurrency has retraced to the $3,200 support zone. Nonetheless, the ‘King of Altcoins’ saw a positive impact from the recent ETF rumors. Ethereum rose by 2.5% following the news, recovering the $3,400 support zone it lost at the beginning of the week. Is ‘ETH Season’ Around The Corner? Crypto analyst Jelle believes that ETH might be ready for take-off despite the expectations of “an underwhelming ETF launch.” To the analyst, ETH “looks ready for a massive push higher” as it tests key levels the week before the alleged approval. Per his chart, the cryptocurrency is testing the support of a downtrend within the accumulation range. Jelle considers that if ETH pushes into $4,000 again, it might not “stop anytime soon.” To him, the “nearly three years in the making breakout” into the expansion zone will kickstart the “ETH season.” Similarly, Daan Crypto Trades pointed out that Ethereum is still consolidating against a “massive 2-year-long downtrend line.” Per the trader, the May pump highs are the place to break. A “higher high above 0.0575” would “flip the market structure to bullish.” Moreover, Crypto Yoddha highlighted the falling wedge pattern in the ETHBTC chart. The trader suggested that a breakout will come “anytime now.” This analysis was also shared by trader Miky Bull, who considers Ethereum “fully ripe for a rally from the retest of fib .618 level.” Related Reading: Ethereum Price Roadblocks: What’s Hindering A Fresh Increase? Despite being down by over 10% from the May pump, ETH has seen a 3.6% increase in the last 24 hours. As of this writing, the ‘King of Altcoins’ is exchanging hands at $3,450. Featured Image from Unsplash.com, Chart from TradingView.com
Bitcoin, Ethereum, and top altcoins are falling at spot rates. As of writing, Bitcoin is teetering around the $60,000 level and still unable to reverse the sharp losses of June 24, when prices cratered, dipping to the $50,000 territory. Bitcoin And Ethereum Put-Call Ratio Falling Even so, there appear to be changes. According to Kaiko, […]
A quant has pointed out how the trends in the BitMEX exchange reserve have affected the Ethereum price during the past few years. BitMEX Ethereum Whales Have Shown Smart Money Behavior In Recent Years In a CryptoQuant Quicktake post, an analyst discussed a pattern in the ETH exchange reserve of the BitMEX platform. The “exchange reserve” here refers to an on-chain metric that keeps track of the total amount of Ethereum that’s sitting in the wallets of any given centralized exchange. When the value of this metric rises, investors will make net deposits to the platform right now. As one of the main reasons investors transfer to exchanges is for selling purposes, this trend can have potential bearish implications for the asset’s price. On the other hand, a decline in the indicator suggests a net amount of the cryptocurrency’s supply is moving off the wallets associated with the exchange. Investors generally take their coins off into self-custody when they plan to hold for extended periods, so such a trend could be bullish for the coin. Related Reading: This Historical Ethereum Top Signal Is Yet To Appear This Cycle Now, here is a chart that shows the trend in the Ethereum exchange reserve for BitMEX over the last few years: As is visible in the above graph, the Ethereum exchange reserve on the BitMEX platform observed a sharp increase back in mid-2022. This would suggest that the investors had made some hefty net deposits into the exchange. According to the quant, the platform houses a significant number of whales, so this large inflow activity would reflect the behavior of these humongous investors. Interestingly, the rapid growth in the indicator had come right before ETH had crashed towards its bear market lows. Thus, it would appear possible that these large holders had anticipated that things were about to get worse for the asset, so they had pulled the trigger on selling while they still had the chance. Another notable shift in the exchange reserve of BitMEX occurred in September 2023, when the whales took out a huge amount of Ethereum, almost completely retracing the earlier bear market increase. From the chart, it’s apparent that soon after these net outflows occurred, the cryptocurrency’s price started on a sharp rally that would eventually take it above the $4,000 level for the first time since December 2021. Related Reading: Shiba Inu, Solana, & Cardano Are All Seeing Buy Signal: Analyst It would appear that these smart money whales were again correct in their intuition about the market, as they could time their buys just in time for the rally. Since these net outflows in September, the indicator hasn’t displayed any significant shifts, as its value has been moving sideways. Given the historical trend, any new deviations that crop up could be worth watching out for, as they could potentially spell another shift for Ethereum. ETH Price Ethereum showed a recovery push from its lows yesterday, but the run has calmed down as ETH is still trading around $3,400 today. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
The launch of spot Ethereum ETFs could trigger massive capital inflows into the market, according to Bitwise CIO Matt Hougan.
Bitwise’s Chief Investment Officer (CIO) Matt Hougan recently discussed the inflows the US Spot Ethereum ETFs could attract. Specifically, he stated how much could flow into these funds in their first 18 months of trading. Spot Ethereum ETFs To Record $15 Billion In First 18 Months Of Trading Hougan mentioned in a note to investors that the Spot Ethereum ETFs could record $15 billion in net inflows in their first 18 months of trading. He elaborated on how he arrived at these figures to show that it wasn’t just a guess. First, Hougan highlighted the market capitalizations of Bitcoin and Ethereum and stated that he expects investors to allocate to their respective exchange-traded products (ETPs) in proportion to their market caps. Related Reading: Spot Bitcoin ETFs See 7 Consecutive Days Of Outflows, Here’s What Happened Last Time Hougan noted that US investors have, so far, invested $56 billion in Spot Bitcoin ETPs and expects that figure to reach $100 billion or more by the end of 2025, when these funds should have matured further and be approved on platforms like Morgan Stanley and Merrill Lynch. Using this as a reference, Bitwise’s CIO stated that the Spot Ethereum ETFs would need to attract $35 billion in assets to stay on par with the Bitcoin ETFs, which he believes could take about 18 months to happen. Hougan also highlighted that the Spot Ethereum ETFs will already have $10 billion in assets upon launch, thanks to the Grayscale Ethereum Trust (ETHE), which will convert to an ETF on launch day. Therefore, Hougan noted that the Spot Ethereum ETFs are now left with $25 billion in inflows to reach parity with the amount of inflows the Spot Bitcoin ETFs are expected to reach by 2025 year-end. Hougan then highlighted data from the international ETP markets to show that investors may be allocating to Bitcoin and Ethereum ETPs roughly in line with their market caps. Using The International Markets As A Point Of Reference According to Hougan, Bitcoin and Ethereum ETPs in Europe hold €4,601 and €1,305 in assets under management (AuM), which translates to 78% and 22% of the aggregate available funds in both markets. Similarly, Bitcoin and Ethereum ETPs in Canada have $4,942 CAD (77%) and $1,475 CAD (23%) respectively. Related Reading: Crypto Research Firm Says Bitcoin Crash Below $60,000 May Not Be The End, Here’s Why Working with Ethereum’s ETP market share in Canada, Hougan estimated that the US Spot Ethereum ETFs could also get 22% of the US market. Based on this, Hougan lowered the estimate of net inflows for the Spot Ethereum ETFs from $25 billion to $18 billion, excluding Grayscale’s assets. Hougan eventually lowered the estimated net inflows to $15 billion by factoring in the fact that a significant portion of the flows into the US Spot Bitcoin ETFs are related to carry trades. He removed $10 billion of carry trade-related AuM from the Bitcoin market, lowering his estimates for Bitcoin from $100 billion to $90 billion and for the Spot Ethereum ETFs from $18 billion to $15 billion. Featured image created with Dall.E, chart from Tradingview.com
SEC Chair Gary Gensler didn’t comment on when his agency would approve Ether ETFs for trading, but analysts predict it could be as soon as next week.
In a significant development for the cryptocurrency market, asset managers are eagerly preparing for the launch of new spot Ethereum ETFs, pending approval from the US Securities and Exchange Commission (SEC). Bitwise Chief Investment Officer (CIO) Matt Hougan has weighed in on the potential of these ETFs, predicting substantial inflows into the regulated market within the first months of trading. Market Data Suggests $15B Demand For Spot Ethereum ETFs Hougan’s projections are based on a thorough analysis of available data. He emphasizes that there is no need for speculation when estimating the demand for spot Ethereum ETFs. Instead, Hougan points to the existing market data to support his forecast of $15 billion in net inflows during the initial 18-month period. To arrive at this estimate, Hougan compares the relative market capitalizations of Bitcoin (BTC) and Ethereum (ETH). As a starting point, he expects investors to allocate to Bitcoin and Ethereum exchange-traded products (ETPs) roughly in proportion to their market capitalizations. Related Reading: 10x Your Crypto Portfolio: Top Analyst Highlights 4 Altcoins To Buy Bitcoin’s market cap currently stands at $1,266 billion, representing 74% of the combined market, while Ethereum’s market cap is $432 billion, accounting for 26% of the combined market. Considering US investors already have around $56 billion invested in spot Bitcoin ETPs, Hougan anticipates reaching $100 billion or more by the end of 2025 as these ETFs mature and gain approval on prominent platforms such as Morgan Stanley and Merrill Lynch. Using this $100 billion benchmark, he suggests that spot Ethereum ETFs would need to attract $35 billion in assets to achieve parity, which he estimates will take approximately 18 months. However, Hougan acknowledges that the actual inflows may differ due to various factors. For instance, the Grayscale Ethereum Trust (ETHE) is expected to convert to an ETP on the launch day, bringing along $10 billion in assets. Factoring this in, the estimated net inflows to reach parity would be around $25 billion. Analysis Of International ETF Markets To validate his estimates, Hougan looks at international ETF markets, particularly Europe and Canada, which already offer Bitcoin and Ethereum ETFs. The asset split between the two cryptocurrencies in these markets is similar, according to Hougan, with Bitcoin ETPs accounting for approximately 78% and Ethereum ETPs representing around 22% of the total Assets Under Management (AUM). This alignment with market cap breakdowns strengthens Hougan’s earlier estimate. Hougan also considers the potential impact of the “carry trade” on Bitcoin and Ethereum ETP markets. While a significant fraction of US Bitcoin ETP flows are linked to the carry trade strategy, he highlights that the Ethereum ETP carry trade is not profitable for institutions. To maintain a conservative estimate, Hougan removes the $10 billion carry-trade-related AUM when sizing the Bitcoin market, leading to a revised estimate of $15 billion in net inflows for Ethereum ETPs. Related Reading: Analysts Battle Over Cardano’s Next Move: 12,000% Rally Or 50% Crash? In sum, Hougan believes that while there are several factors to consider and potential adjustments to the model, a starting point of $15 billion in net new demand for spot Ethereum ETFs within the next 18 months is a reasonable projection. At the time of writing, ETH was trading at $3,405, up nearly 3% in the past 24 hours, after hitting a low of $3,230 on Monday. Featured image from DALL-E, chart from TradingView.com
Ethereum price extended losses below the $3,320 support. ETH tested the $3,240 support and is now eyeing a decent increase above the $3,380 resistance. Ethereum extended losses and tested the $3,240 support zone. The price is trading below $3,400 and the 100-hourly Simple Moving Average. There is a key bearish trend line forming with resistance near $3,440 on the hourly chart of ETH/USD (data feed via Kraken). The pair could attempt a decent increase above the $3,380 and $3,400 resistance levels. Ethereum Price Founds Support Ethereum price struggled to start a fresh increase above the $3,500 zone. ETH followed Bitcoin’s bearish path and the price declined below the $3,350 level. The bears pushed the price below the $3,320 support zone. A low was formed at $3,230 and the price is now correcting losses. There was a minor upward move above the $3,300 and $3,320 levels. The price climbed above the 23.6% Fib retracement level of the recent drop from the $3,517 swing high to the $3,230 low. Ethereum is still trading below $3,450 and the 100-hourly Simple Moving Average. On the upside, the price might face resistance near the $3,375 level or the 50% Fib retracement level of the recent drop from the $3,517 swing high to the $3,230 low. The first major resistance is near the $3,450 level. There is also a key bearish trend line forming with resistance near $3,440 on the hourly chart of ETH/USD. The main resistance sits at $3,540. An upside break above the $3,540 resistance might send the price higher. The next key resistance sits at $3,620, above which the price might gain traction and rise toward the $3,650 level. Any more gains could send Ether toward the $3,720 resistance zone in the coming days. Another Decline In ETH? If Ethereum fails to clear the $3,450 resistance, it could start another decline. Initial support on the downside is near $3,325. The first major support sits near the $3,24 zone. A clear move below the $3,240 support might push the price toward $3,200. Any more losses might send the price toward the $3,120 level in the near term. Technical Indicators Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone. Hourly RSI – The RSI for ETH/USD is now above the 50 zone. Major Support Level – $3,240 Major Resistance Level – $3,450
With the Bitcoin price drop from the $70,000 level to below $64,000, meme coins have understandably suffered as a direct result of this. During this time, meme coins, both large and small, have seen their prices drop significantly, raising concerns about whether the meme coin summer is over. However, going by previous crashes, there may […]
Popular crypto analyst degentrading (@degentradingLSD) has made a bold prediction that Ethereum will reach $6,000 by September 2024. This prediction comes in response to an analysis by Mechanism Capital founder Andrew Kang, who expects Ethereum to underperform despite the imminent launch of US spot Ethereum ETFs. Andrew Kang’s analysis projects a continued downtrend for ETHBTC, with the ratio expected to range between 0.035 and 0.06 over the next year. In his detailed thread on X, Kang expressed skepticism about Ethereum’s potential, despite the ETF launch being just days away. Why Ethereum Could Reach $6,000 By September Degentrading, however, presented a counter-argument in a thread on X. Degentrading begins by examining the change in CME open interest (OI) from pre-ETF days to the present, noting a substantial increase of approximately $5 billion. He explains, “Pre-ETF, it was very onerous to perform cash and carry on CME due to margin requirements. Hence, the upper bound of basis trades is probably capped at that amount.” This insight suggests that the advent of the ETF could significantly ease trading constraints, potentially unlocking a large influx of capital. However, he tempers this by discussing the challenges posed by the extinction of prime brokers like Genesis, which complicates spot borrowing as a hedge against CME futures longs. According to degentrading, “Unless market makers can frequently charge a bid/ask spread, they are effectively locking in a loss. Therefore, the sheer amount of CME basis trades has to be a minority. I would peg the figure at $1-2 billion max.” This leaves an estimated $7 billion in potential inflows, a figure he describes as “highly dependent on assumptions.” Related Reading: Ethereum (ETH) Records Surge In Active Addresses – Incoming Price Rebound? Degentrading contrasts Ethereum’s position with that of Bitcoin, criticizing sentiments from analysts like Eric Balchunas. “Nothing in traditional finance is as exciting as tech. Bitcoin has the branding of digital gold or millennial gold. Gold’s market cap is approximately $15 trillion,” he notes. In contrast, Ethereum is seen as a decentralized global settlement layer or world computer, with the US stock market already valued at $50 trillion. This, he argues, sets a much higher ceiling for Ethereum. He further explains that in his discussions with traditional finance (tradfi) professionals, there is more enthusiasm for ETH and even SOL compared to BTC. “People are much more excited about ETH or SOL for that matter. Hence, I would peg the inflow conversion rate at half of Bitcoin’s, which translates to about $3-4 billion into ETH,” degentrading asserts. One of the key points in degentrading’s argument is Ethereum’s relative illiquidity compared to Bitcoin. He highlights that while Ethereum is roughly one-third the size of Bitcoin, its liquidity is only about 10% of BTC. “This means that an influx of $3-4 billion will materially move ETH,” he emphasizes. This illiquidity could lead to significant price movements with relatively smaller capital inflows. Addressing the market’s current positioning, degentrading points out the overall bleak sentiment on Crypto Twitter (CT), viewing it as the best technical setup for Ethereum. He notes, “On the cusp of the ETH ETF launch, you have people setting expectations for $500 million of inflows over six months. This is the BEST technical setup for ETH.” Related Reading: 3 Reasons To Invest In Ethereum, 1 To Stay Bitcoin-Only: Bitwise CIO An important factor in degentrading’s analysis is the anticipated conversion of Grayscale’s Ethereum Trust (ETHE) into an ETF. He suggests that ETHE will likely face much less selling pressure compared to the Grayscale Bitcoin Trust (GBTC) due to a lesser lender overhang. “ETHE will also likely face MUCH LESS selling pressure than GBTC because of the much lesser lender overhang,” he notes. Impact Of Cash And Carry Trades Andrew Kang responded to degentrading’s analysis, highlighting the involvement of large funds like Millennium, which owns $2 billion of the ETF. Kang points out that such funds engage in basis trades and are not long-only investment funds. “Millennium by itself owns $2 billion of the ETF. They are not a long-only investment fund. They do these types of basis trades. That’s only one fund from an old filing,” Kang stated. Degentrading acknowledged this but emphasized the cost implications of holding a cash and carry position. He argued that the cost of holding such positions nets out significant amounts, which impacts the market maker’s profitability. “On that thought, the cost of holding a cash and carry would net out $300 million to Millennium and cost the market maker that amount, implying that the delta is borne by a naked delta on the futures,” degentrading retorted. At press time, ETH traded at $3,362.90. Featured image created with DALL·E, chart from TradingView.com
Ethereum price struggled to climb above the $3,650 resistance and trimmed gains. ETH is now signaling a downside break and might decline below $3,450. Ethereum is trimming gains from the $3,620 resistance zone. The price is trading below $3,550 and the 100-hourly Simple Moving Average. There was a break below a short-term rising channel forming with support at $3,540 on the hourly chart of ETH/USD (data feed via Kraken). The pair could gain bearish momentum if it dips below the $3,485 and $3,450 support levels. Ethereum Price Trims Gains Ethereum price started a decent increase above the $3,500 zone. ETH outperformed Bitcoin and broke the $3,550 resistance. However, the price struggled to surpass the $3,620 level and failed to test $3,650. A high was formed at $3,620 and the price is now trimming gains. There was a minor decline below the $3,550 level. The price dipped below the 23.6% Fib retracement level of the upward move from the $3,351 swing low to the $3,620 high. There was a break below a short-term rising channel forming with support at $3,540 on the hourly chart of ETH/USD. Ethereum is still trading below $3,550 and the 100-hourly Simple Moving Average. The bulls are now active near the $3,485 support zone and the 50% Fib retracement level of the upward move from the $3,351 swing low to the $3,620 high. On the upside, the price might face resistance near the $3,520 level. The first major resistance is near the $3,560 level. The main resistance sits at $3,620 or $3,650. An upside break above the $3,650 resistance might send the price higher. The next key resistance sits at $3,720, above which the price might gain traction and rise toward the $3,750 level. Any more gains could send Ether toward the $3,880 resistance zone in the coming days. More Downsides In ETH? If Ethereum fails to clear the $3,560 resistance, it could start another decline. Initial support on the downside is near $3,485. The first major support is $3,450. A clear move below the $3,450 support might push the price toward $3,420. Any more losses might send the price toward the $3,350 level in the near term. Technical Indicators Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone. Hourly RSI – The RSI for ETH/USD is now below the 50 zone. Major Support Level – $3,450 Major Resistance Level – $3,560
Solana, one of the top altcoins, trailing Ethereum and the BNB Chain, has not been spared in the recent correction. After rallying to as high as $210 in Q1 2024, the coin is now sliding, facing strong headwinds, plunging, and following the performance posted by Bitcoin and Ethereum. Is This The Best Time To Buy Solana? Even amid this deep retracement, Raol Pal, a macro analyst, thinks this is the best time for investors and traders to consider Solana. In a post on X, Pal said traders may look at loading the coin, citing the candlestick arrangement in the daily chart. Looking at the SOLUSDT chart, it is clear that the coin is moving sideways and inside a broader flag after the spike to over $200 in March. However, what’s emerging amid the cool-off is that the zone between $120 and $125 is a support to watch out for. Related Reading: Altcoin Massacre? Prices Plummet 40-90%, Recovery Stalled — Analyst At press time, SOL is changing hands at around $130, down approximately 40% from the March 2024 highs. If bears of late May 2024 press on, it will be interesting to see how prices will react at this level. From Pal’s position, the analyst expects prices to bounce back from this level and resume the uptrend from last year. The problem is that there won’t be any guarantee that prices will shoot higher from this support zone. Technically, a close above $190 and preferably $190, could mark the resumption of the next leg up, quashing bears. On-Chain Activity Shrinking As Ethereum Set For More Institutional Support Whether this will pan out in the coming weeks or months is unclear. How SOL performs is primarily tied to market developments and on-chain activity, among other factors. Although Solana is fast emerging as a preferred choice for meme coin issuers, there has been a marked drop in on-chain activity in recent days. Notably, Ethereum layer-2 solutions like Base, Arbitrum, and Optimism appear to be taking over. Related Reading: Bitcoin Battles $64,515 Support Level, Can It Hold or Will Bears Prevail? Solana offers higher scalability than Ethereum, meaning transaction fees are low. When on-chain activity drops relative to other cheaper platforms, it could mean the demand for SOL is falling, which is a net negative for prices. At the same time, the revival in the stock market, which has seen indices like the S&P 500 rally, could draw investors’ attention to cryptocurrencies. Additionally, with the United States Securities and Exchange Commission (SEC) on the brink of approving a spot Ethereum exchange-traded funds (ETF), more capital will flow to ETH. Feature image from Shutterstock, chart from TradingView
Data shows the cryptocurrency derivatives market has suffered a high amount of liquidations in the past day after the crash the altcoins have seen. Altcoin Longs Witness Squeeze, Ethereum Leads In Liquidations The past day has been a volatile time for the cryptocurrency market, with the majority of the altcoins suffering from drops of more […]
Prominent crypto analyst Jelle has projected Ethereum (ETH) to surge to $5,000 by the end of this year. This prediction comes with a notable reason from a technical perspective. Ethereum Rally: Setting the Stage For New Peaks Jelle’s forecast comes after Ethereum is experiencing a form of stabilization above the $3,500 mark, following a correction from its March high of over $4,000. Related Reading: Bitcoin, But Ethereum Holds Potential for Surprise — QCP Capital As the crypto community watches closely, Jelle’s insights suggest significant bullish potential for Ethereum, particularly as the market anticipates the launch of spot Ethereum exchange-traded funds (ETFs). Jelle’s analysis points to a pivotal moment for Ethereum. After a brief dip in price, Ethereum has rebounded, reaching as low as $3,384 last Friday; the asset is currently trading around the $3,500 mark and demonstrating a recovery though with a 2.2% decrease in the last 24 hours and nearly 5% over the past week. This stabilization is a minor fluctuation and a critical support level that could foresee significant price movements. According to Jelle, “ETH successfully turned $3,500 into support. Very few people are ready for this one to make new all-time highs, but $5,000 ETH is very much on the menu this year. Let’s roll.” This statement underscores a strong conviction that Ethereum is recovering and gearing up for a substantial upward trajectory. The current market dynamics provide a fertile ground for such optimism. Ethereum’s resilience in maintaining key support levels amidst market fluctuations bodes well for its potential to breach previous highs. The anticipated introduction of spot Ethereum ETFs is expected to inject further vigor into its market cap, attracting institutional and retail investors drawn to its ecosystem and the promise of enhanced liquidity and regulatory compliance. $ETH successfully turned $3,500 into support! Very few people are ready for this one to make new all-time highs, but $5,000 ETH is very much on the menu this year. Let’s roll. pic.twitter.com/k438SvCX2o — Jelle (@CryptoJelleNL) June 17, 2024 Strategic Movements and Market Sentiments The broader crypto market, especially Ethereum, is buzzing with activity, anticipating the spot on ETH ETFs. Recent data from NewsBTC highlights that the crypto community is particularly bullish on Ethereum, as evidenced by the substantial number of contracts that expire ETH options. Most of these are call options, betting on Ethereum’s price rise, with a notably low put-call ratio of 0.36, signaling a strong bullish sentiment among traders. This optimistic outlook is further supported by significant buying activities from permanent holders, particularly institutions. On June 12, these investors made one of the largest daily purchases of Ethereum, buying 298,000 ETH, just shy of the record 317,000 ETH purchased on September 11, 2023. Such investment activity not only underscores the confidence in Ethereum’s long-term value but also indicates a market poised for a rally, especially with potential catalysts such as the approval of ETH spot ETFs on the horizon. Related Reading: Ethereum Withdrawals From Coinbase Top $1.2 Billion, What’s Going On? Moreover, QCP Capital’s analysis reinforces this sentiment, noting Ethereum’s higher implied volatility than Bitcoin. This suggests that while the general crypto market might experience subdued activity by summer, Ethereum could see significant trading volumes and price action, particularly if the ETFs start trading live. Featured image created with DALL-E, Chart from TradingView
Ethereum price declined again and retested the $3,365 support zone. ETH could start a fresh increase toward $3,700 if it stays above $3,365. Ethereum is still holding the key $3,365 support zone. The price is trading below $3,550 and the 100-hourly Simple Moving Average. There is a connecting bearish trend line forming with resistance near $3,500 on the hourly chart of ETH/USD (data feed via Kraken). The pair could form a double-bottom pattern and rise toward the $3,700 resistance. Ethereum Price Retests Key Support Ethereum price failed to gain pace for a move above the $3,580 and $3,650 resistance levels. ETH reacted to the downside like Bitcoin and declined below the $3,500 support. There was a sharp move below $3,420, but the bulls were again active near $3,350. A low was formed near the $3,350 level and the price is again rising. There was a move above the $3,380 and $3,400 resistance levels. The price was able to clear the 23.6% Fib retracement level of the downward move from the $3,649 swing high to the $3,350 low. Ethereum is now trading below $3,550 and the 100-hourly Simple Moving Average. It seems like the price could form a double-bottom pattern and rise toward the $3,700 resistance. If there is a fresh increase, the price might face resistance near the $3,460 level. The first major resistance is near the $3,500 level or the 50% Fib retracement level of the downward move from the $3,649 swing high to the $3,350 low. There is also a connecting bearish trend line forming with resistance near $3,500 on the hourly chart of ETH/USD. An upside break above the $3,500 resistance might send the price higher. The next key resistance sits at $3,580, above which the price might gain traction and rise toward the $3,650 level. A clear move above the $3,650 level might send Ether toward the $3,720 resistance. Any more gains could send Ether toward the $3,800 resistance zone. Downside Break In ETH? If Ethereum fails to clear the $3,500 resistance, it could continue to move down. Initial support on the downside is near $3,380. The first major support is at $3,350. A clear move below the $3,350 support might push the price toward $3,250. Any more losses might send the price toward the $3,120 level in the near term. Technical Indicators Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone. Hourly RSI – The RSI for ETH/USD is now below the 50 zone. Major Support Level – $3,350 Major Resistance Level – $3,500
Ethereum is slipping after printing higher highs over the weekend. Considering price action, the coin is up roughly 5% from last week’s lows but is still trending below the all-important resistance at $3,700. Although ETH holders and traders are upbeat, prices must decisively close above this liquidation level, paving the way for more gains in […]
The Bitcoin market has witnessed significant shifts recently, influenced by macroeconomic factors and changing investor sentiments. Last week, digital asset investment products saw substantial outflows, which CoinShares attributed to several key economic updates. These included the release of US CPI data, the Federal Open Market Committee (FOMC) meeting, and Producer Price Index (PPI) figures. These events seemed to spark a rapid surge in Bitcoin price, pushing it briefly towards the $70,000 mark before a swift downturn adjusted the valuation back to around $65,000. Related Reading: Metrics Signal Bitcoin Price Increase – But When Is Anyone’s Guess Market Shifts: BTC Faces Major Outflows While Some Altcoins Attract Investment So far, this fluctuation in Bitcoin’s price is part of a broader pattern of volatility that has characterized the digital currency market. Just last week alone, institutional and retail investors pulled back approximately $600 million from crypto funds, marking a significant retreat. CoinShares suggests that this could signal a growing trend of caution, amplified by a “hawkish stance” at the recent FOMC meeting, which may have encouraged investors to reduce their exposure to volatile assets like cryptocurrencies. Bitcoin, notably the most impacted, faced outflows totaling $621 million. Despite this, there was a silver lining as altcoins like Ethereum, Litecoin, and others saw minor inflows. Ethereum led with a $13 million increase, suggesting divergent investor confidence in altcoins compared to Bitcoin. This scenario presents a mixed view where Bitcoin struggles under selling pressure while select altcoins gain marginal traction. Meanwhile, the overall impact on the market has been palpable, with total assets under management dropping from over $100 billion to $94 billion within a week. Trading volumes also dipped significantly from their annual average, indicating a cautious approach by traders across the board. Regionally, while the US experienced the brunt of the outflows, countries like Germany saw inflows, suggesting a varied global response to the current economic climate. Bitcoin ETFs See Mixed Fortunes Despite a steady increase in the overall net inflows into US spot Bitcoin exchange-traded funds (ETFs), which reached $15.11 billion in recent weeks, the sector experienced a downturn last week with a net outflow of $190 million per day, based on data from SoSoValue. In terms of market performance, Bitcoin’s value sharply declined, hitting a low of $65,398 last Friday. However, as of today, Bitcoin’s price has slightly recovered to $65,552, though it still shows a decline of 1.1% in the past day and 5.5% over the week. Speaking on Bitcoin spot ETFs, BlackRock’s Chief Investment Officer, Samara Cohen, has observed a gradual but steady interest in them despite their slower-than-expected uptake. According to Cohen, currently, the majority of Bitcoin ETF transactions, approximately 80%, are conducted by “self-directed investors” using online brokerage platforms. Cohen added that the iShares Bitcoin Trust (IBIT) is one of the ETFs launched this year, attracting attention from individual investors and hedge funds and brokerages, as indicated in the recent 13-F filings. Related Reading: This Altcoin Gem Will Overtake Solana, Predicts Arthur Hayes However, participation from registered investment advisors remains comparatively low, Cohen discussed during the recent Crypto Summit. Featured image created with DALL-E, Chart from TradingView
Bitcoin is facing intense selling pressure, but charts suggest strong support at $64,500 and again at $60,000.
The Ethereum Foundation is again in the news following its recent transaction involving millions of Ethereum (ETH) tokens. The non-profit organization’s Ethereum transactions are always significant, considering the impact they usually have on the second-largest crypto token. Ethereum Foundation Transfers $64.4 Million Worth Of ETH Crypto journalist Colin Wu revealed in an X (formerly Twitter) post that a wallet (0x8e…D052) linked to the Ethereum Foundation transferred 18,089 ETH ($64.4 million) to a new address (0x87…D812). On-chain data shows that the new address has yet to transfer these funds and that the ETH holdings have yet to be offloaded on the market. Related Reading: Solana Whale Shakes Market With $372 Million Transfer, Where Are The Coins Headed? Transactions involving the Ethereum Foundations are always concerning because the non-profit organization has a reputation for selling at the top. As such, the transaction of these funds is one to keep an eye on, considering that the potential sale of these tokens could mean that the Ethereum Foundation is again looking to catch ETH at the top. It is worth mentioning that the Ethereum Foundation has already sold over 1,700 ETH since the start of 2024 with on-chain analytics platform SpotOnChain, noting that these transactions have always occurred ahead of a price drop. Therefore, a potential price drop if these 18,089 ETH are eventually sold is a huge possibility. Despite this development, Ethereum’s outlook is very bullish, especially with Bloomberg analyst Eric Balchunas stating that the Spot Ethereum ETFs could begin trading by July 2. These funds are expected to spark a significant rally for the second-largest crypto by market cap, with crypto experts like Ash Crypto predicting that Ethereum could rise to $10,000 thanks to these Spot Ethereum ETFs. ETH To $10,000 Is The Most “Asymmetric Bet” Crypto analyst and trader Tyler Durden mentioned that the most asymmetric bet in crypto today is ETH reaching $10,000. He also highlighted Ethereum’s chart against Bitcoin and suggested that ETH was ready for that big move, considering it has traded sideways for eight months. The analyst also suggested that the Spot Ethereum ETFs will play a massive role in Ethereum’s rise to this price level. He stated that Wall Street went through a lot of effort to get the Spot Ethereum ETFs approved and that they would ensure that they make money from ETH while pumping its price. Related Reading: Bernstein Analysts Revise Bitcoin Target, $200,000 And $1 Million Become Main Focus Meanwhile, Durden boldly asserted that money would exit the Solana ecosystem and rotate to Ethereum. He claimed that Solana has lost its “main character and driver of liquidity”, which is why the money will flow into ETH. Interestingly, he mentioned that celebrities have “cannibalised,” which is why he believes that the capital rotation cannot happen the other way around with money moving from Ethereum to Solana. At the time of writing, ETH is trading at around $3,500, down in the last 24 hours, according to data from CoinMarketCap. Featured image from The Crypto Times, chart from Tradingview.com
Ethereum has seen a number of notable withdrawals that suggests that crypto whales are expecting a recovery in price. These large withdrawals has caused the ETH balances on centralized exchanges to fall to their lowest level since 2016. 336,000 ETH Withdrawn From Exchanges Crypto analyst Ash Crypto took to X (formerly Twitter) to reveal a notable change in the amount of ETH that is being held on centralized exchanges currently. Notably, there has been a marked increase in the withdrawals of small and large investors alike, leading to the highest withdrawal trend of 2024 so far. Related Reading: DOGE To The Moon: This Dogecoin Metric Just Turned Bullish For The First Time Since 2020 The report focuses on the withdrawals from the Coinbase exchange, which is the largest crypto exchange in the United States. The uptick in the withdrawal trend saw a whopping 336,000 ETH withdrawn from the exchange’s wallets in just 48 hours. This translates to the highest withdrawal trend from the exchange so far this year. However, Coinbase wasn’t the only crypto exchange hit hard by the Ethereum withdrawals as the cumulative exchange addresses saw their ETH balances fall drastically. As the on-chain tracker Santiment revealed in a report, the total ETH held on centralized exchange wallets has fallen 8.6% in the last two weeks alone. These withdrawals have greatly impacted the exchange balances, causing them to fall to their lowest point in 8 years. This means that the last time that the exchange balances were this low was back in 2016, which is three bull markets ago. Will This Propel Ethereum Price To $10,000? Naturally, the withdrawal of Ethereum from exchanges is bullish given that this is a trend that suggests investors are choosing to hold their Ethereum coins rather than sell them. If coins were moving the other direction and being deposited on exchanges instead, it would’ve been bearish for the price as it meant that investors were looking to offload their holdings for profit. Related Reading: XRP Continues To Struggle Below $0.5, Ex-Ripple Director Reveals Why Price Action Remains Muted Crypto analyst Ash Crypto shares the sentiment that the withdrawals are bullish for the price. According to the analyst, with Spot Ethereum ETFs set to start trading in 2024 in addition to this, it means that the ETH price trading above $10,000 is just a matter of time. Presently, the ETH price is still closely following the Bitcoin trend. It has recovered above $3,500 once more after initially falling below this support level on Thursday. Nonetheless, it continues to nurse losses on the weekly chart, with CoinMarketCap data showing a decline of 7.88%. Featured image created with Dall.E, chart from Tradingview.com
Ether’s price holds above a crucial support level where whales are accumulating more.
In a pronounced shift in the digital assets landscape, the world’s largest asset manager, BlackRock, signaled a stronger alignment with public blockchain networks, notably Ethereum, over permissioned alternatives. This key insight emerged during the “Beyond Bitcoin ETFs – What’s Next on the Institutional Roadmap?” panel at Coinbase’s State of Crypto Summit 2024 on Thursday. BlackRock […]
DeFi lending protocol UwU Lend has suffered two attacks in the past three days. The second exploit occurred on Thursday during the protocol’s reimbursement process from the first hack. The ongoing saga has taken around $23 million from the protocol. Related Reading: ZkSync Faces Backlash Amid Token Airdrop Controversy DeFi Protocol Hit With $20 Million […]
In a significant regulatory shift, the US Securities and Exchange Commission (SEC) partially approved the long-awaited Ethereum ETF filings submitted by prominent asset managers three weeks ago, including BlackRock and Grayscale. SEC Chairman Gary Gensler has indicated that full approval for these Ethereum ETFs could come by the end of the summer, providing much-needed clarity […]
On-chain data shows that Bitcoin and Ethereum exchange supplies have gone opposite ways recently, a sign that a rotation may be on. Bitcoin’s Exchange Supply Has Gone Down While Ethereum’s Has Risen According to data from the on-chain analytics firm Santiment, the Supply on Exchanges metric has dropped to the lowest level since December 2021 […]
Ethereum price failed to clear the $3,720 resistance. ETH declined again and is now at risk of more losses below the $3,550 support zone. Ethereum started a fresh decline from the $3,720 resistance zone. The price is trading below $3,650 and the 100-hourly Simple Moving Average. There is a key bearish trend line forming with resistance near $3,680 on the hourly chart of ETH/USD (data feed via Kraken). The pair could extend losses if there is a close below the $3,550 support. Ethereum Price Dips Again Ethereum price attempted a decent increase above the $3,650 resistance zone. ETH even spiked above $3,700 but the bears were active. A high was formed at $3,710 and the price started a fresh decline. There was a sharp decline below the $3,660 and $3,650 levels. A low was formed near $3,565 and the price is now consolidating losses, like Bitcoin. Ethereum is now trading below $3,650 and the 100-hourly Simple Moving Average. If there is a fresh increase or a recovery wave, the price might face resistance near the 23.6% Fib retracement level of the downward move from the $3,710 swing high to the $3,565 low. The first major resistance is near the $3,640 level. There is also a key bearish trend line forming with resistance near $3,680 on the hourly chart of ETH/USD. The trend line is close to the 61.8% Fib retracement level of the downward move from the $3,710 swing high to the $3,565 low. An upside break above the $3,680 resistance might send the price higher. The next key resistance sits at $3,720, above which the price might gain traction and rise toward the $3,750 level. If the bulls push Ether above the $3,750 level, the price might rise and test the $3,800 resistance. Any more gains could send Ether toward the $3,880 resistance zone. More Losses In ETH? If Ethereum fails to clear the $3,650 resistance, it could continue to move down. Initial support on the downside is near $3,550. The next major support is near the $3,520 zone. The main support sits at $3,500. A clear move below the $3,500 support might push the price toward $3,320. Any more losses might send the price toward the $3,250 level in the near term. Technical Indicators Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone. Hourly RSI – The RSI for ETH/USD is now below the 50 zone. Major Support Level – $3,550 Major Resistance Level – $3,650
Following the recent price spike that brought Ethereum (ETH) close to the $4,000 mark, the second-largest cryptocurrency has experienced inflows and renewed market enthusiasm. This comes in response to the US Securities and Exchange Commission’s (SEC) approval of Ethereum ETF applications by major asset managers. Best Week For Ethereum Since March According to a report by CoinShares, digital asset investment products have witnessed a total of $2 billion inflows, contributing to a five-week consecutive run of inflows amounting to $4.3 billion. Additionally, trading volumes in exchange-traded products (ETPs) have risen to $12.8 billion for the week, a 55% increase from the previous week. Notably, inflows have been observed across various providers, indicating a turnaround in sentiment. Incumbent providers have also experienced a slowdown in outflows, reinforcing the positive market sentiment. Related Reading: Solana Searching For Direction: Will SOL Break Free Or Fall Flat? As seen in the image above, Bitcoin (BTC) continues to dominate the market, with inflows totaling $1.97 billion for the week. On the other hand, short Bitcoin products saw outflows of $5.3 million for the third consecutive week. Similarly, Ethereum has also seen a notable surge in inflows, recording its best week since March with a total of $69 million, which for CoinShares is likely a reaction to the unexpected SEC decision to allow spot-based ETFs on Ethereum. Differing Perspectives On ETH’s Price Despite the positive developments, Ethereum’s price has struggled to maintain bullish momentum, failing to retest its yearly high of $4,100 reached in March. On Friday, the price dropped as low as $3,577. However, Ethereum addresses holding more than 10,000 ETH have increased by 3% in the past three weeks, indicating a significant spike in buying pressure. Related Reading: Major Bitcoin Metric Breaks 3-Month Downtrend Amid Bullish Network Recovery Market analysts have provided differing perspectives on Ethereum’s future price action. “Trader Tank” predicts that ETH may drop to $3,500 while acknowledging the potential for a bullish reversal upon reclaiming the $3,700 level. On the other hand, crypto analyst Lark Davis highlights that Ethereum’s supply on exchanges is at an eight-year low, suggesting that the upcoming ETFs could cause a “massive supply shock” and potentially lead to a substantial increase in ETH’s price. Ultimately, as Ethereum’s price remains uncertain, market participants eagerly await the next movements in the cryptocurrency. As investors and analysts closely monitor the market dynamics, the question of whether a breakout above $4,000 or a retest of lower support levels at $3,500 awaits an answer. The second-largest cryptocurrency on the market is currently trading at $3,690, down 6.5% in the past two weeks. Featured image from DALL-E, chart from TradingView.com
In a recent flurry of heated exchanges on social media platform X, Evgeny Gaevoy, the founder and CEO of crypto trading powerhouse Wintermute, has sparked a notable debate concerning the future of Ethereum and its leadership. Gaevoy, in a pointed critique, suggested that potential failures in Ethereum would not stem from technological competition like Solana, […]
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has recently seen its price fall below the 4-hour Simple Moving Average (SMA). This technical development is noteworthy for traders and investors, as the 4-hour SMA is often used to gauge short-term market momentum. When a cryptocurrency’s price drops below this moving average, it can signal a potential shift in market sentiment from bullish to bearish. This could imply increased selling pressure and a possible downward trend continuation. The implications of this price movement extend beyond technical analysis, as broader market conditions, investor behavior, and fundamental factors also play a crucial role in shaping Ethereum’s future trajectory. In this article, we will be exploring ETH’s potential price action with the help of technical indicators. Ethereum Price Condition On The 4-Hour Chart Firstly, it can be observed that ETH’s price in the 4-hour timeframe has experienced a drop below the 100-day SMA after moving in a consolidation manner for a while. It should be noted that most times when an asset drops below SMA, it could indicate a short or long-term move in that direction. Additionally, the Relative Strength Index (RSI) indicator also confirms that Ethereum might move in the downward direction for a while as the RSI line has crossed below 50% and could trend there for a while. From the daily chart, it can be noticed that Ethereum is attempting to make a move toward the 100-day SMA after dropping a bearish candlestick on the previous day. At this point, it can be suggested ETH dropped to test the 100-day SMA before making an upward move again. Finally, the RSI line from the RSI indication is currently dropping out of the overbought zone toward 50% indicating that there is still room for ETH to move downward. ETH Price Projection As of right now, Ethereum is attempting to move downward toward the daily SMA, If it drops below, it will continue to move downward toward the $2,865 support level. Furthermore, it can drop even more to test the $2,147 support level if it drops below the aforementioned level. However, if ETH’s price touches the SMA and bounces back, it will move upward toward the $4,099 resistance level. Also, should it break below this resistance level, it will continue to move up to test the $4,863 level. ETH may move to create a new high if it rises above the $4,863 level. As of the time of writing, ETH’s price was trading at around $3,694 and was up by 0.41% with a market capitalization of over $443 billion and a 24-hour trading volume of over $18 billion. Its market capitalization is down by 2.97%, while its trading volume is up by 39.28% in the past day. Featured image from iStock, chart from Tradingview.com
The on-chain analytics firm CryptoQuant has explained why Bitcoin and Ethereum have recently appeared to be on a path towards acceleration. Bitcoin & Ethereum Are Looking Bullish In On-Chain Metrics In a new thread on X, the official CryptoQuant handle discussed how some important on-chain indicators are looking for Bitcoin and Ethereum right now. Related Reading: Bitcoin Investors Beware: Extreme Greed Has Returned In Crypto The first two metrics of interest here keep track of the demand from the permanent holders and the whales. First, here are the relevant charts for BTC: As is visible above, demand from the permanent holders, or the HODLers, had been going down after peaking in March, but recently, the metric has seen a turnaround. These investors have added 70,000 BTC to their wallets in the past month. A similar trend has also been witnessed in the whales’ holdings, typically defined as addresses carrying more than 1,000 BTC. According to the analytics firm, the monthly demand from these large investors is up 4.4%. CryptoQuant has also revealed that the sector is experiencing an influx of potentially new capital, as the “new whales” have seen their Realized Cap shoot up recently. The Realized Cap measures the amount of capital a particular investor group uses to purchase their Bitcoin. Thus, the increase in the Realized Cap of the new whales, which are whale entities that have entered within the past 155 days, would represent the fresh demand from large investors coming into BTC. As the charts above showcase, the pattern in this metric has looked similar this year to what was observed back in 2020. The demand that year led to the 2021 bull run. Now, here is what the trend in the permanent holder inflows and whale balance has looked like for Ethereum: As the graphs show, demand for Ethereum from these investor groups has shot up since the spot exchange-traded fund (ETF) approvals last month. The permanent holders are now making inflows of 40,000 ETH per day on average, while whales, the investors holding 10,000 to 100,000 ETH, have increased their holdings to record highs of around 16 million ETH. While signs have been positive for Bitcoin and Ethereum in terms of direct demand, there is a development that may be detrimental to the cryptocurrency sector as a whole. It is the slowdown in the growth of the stablecoins. The chart shows that the Tether (USDT) market cap grew sharply during the rally towards the Bitcoin all-time high. While the largest stablecoin still receives capital injections, its demand has slowed. Related Reading: Shiba Inu, Cardano Seeing Explosive Whale Activity, Santiment Reveals Historically, stablecoins have been one of the gateways for capital into the sector, so consistent demand for them can be required for sustainable rallies. BTC Price At the time of writing, Bitcoin is trading at around $70,200, up more than 4% over the past week. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com