As the market’s second largest cryptocurrency, Ethereum (ETH), struggles to maintain momentum above the crucial $2,500 threshold, one analyst believes that ETH is poised for a significant rally. In a recent post on social media platform X (formerly Twitter), crypto analyst Cyclop expressed a bullish outlook, labeling the current market conditions as the best long setup for Ethereum he has seen in years. Analyst Sees $4,000 Target This Summer Cyclop highlighted that Ethereum short positions have reached all-time highs, a situation reminiscent of a previous spike that occurred just weeks ago. The analyst noted that liquidity has been swept on both sides, creating a scenario where market uncertainty may actually benefit Ethereum. “Most doubt ETH and altcoins right now—I’m betting on $4,000 this summer,” he stated confidently. Related Reading: TD Sequential Flashes Buy: Dogecoin Ready For Rebound To $0.21 Cyclop outlined several key factors driving his optimistic stance. First, he pointed to the recent Pectra update, which has reinvigorated interest in Ethereum by enhancing transaction capabilities, updating security features, and improving staking options. This update has reportedly led to increased demand, contributing to a potential price surge. Moreover, Cyclop emphasized the broader macroeconomic landscape, noting that cryptocurrency adoption is accelerating beyond Bitcoin (BTC), with Ethereum taking a prominent role. The analyst suggests that major corporations and banks are beginning to purchase and stake Ethereum, further boosting trust and interest in the digital asset which could ultimately result in more demand and more price uptrends. Ethereum Rallies May Trigger Altcoin Boom On-chain metrics also favor Ethereum, with the cryptocurrency ranking highly in various categories, according to Cyclop. It currently stands as the second-highest by fees, leads in bridged net flows, and ranks third in stablecoin supply changes, showcasing its robust market position. Another critical aspect of Cyclop’s analysis concerns altcoins and the upcoming altseason, traditionally characterized by a rush of investment into Ethereum before spilling over into smaller tokens. He pointed out that historical patterns indicate that Ethereum price rallies often trigger broader altcoin surges, and the current market sentiment suggests that many altcoins are at their lowest ebb. Related Reading: Dogecoin Silent Build-Up: Double Bottom Hints At Explosive Move To $0.47 While Cyclop acknowledges that a majority of altcoins may face significant challenges, he argues that ETH remains undervalued, especially with Bitcoin trading near $100,000. He has made strategic moves, reallocating some of his Bitcoin holdings into Ethereum and promising strong altcoins. His initial target for Ethereum is $3,000, where he plans to take profits, followed by a series of sell orders between $4,000 and $6,000. As of press time, ETH trades at $2,500, a 12% price increase in the weekly time frame. Featured image from DALL-E, chart from TradingView.com
The Ethereum (ETH) price experienced a significant decline on Thursday, falling over 7% and approaching the $2,400 mark. However, expert analysis suggests that a new bullish trend may soon emerge for the second-largest cryptocurrency. Key Metrics Indicate Accumulation By Larger Investors Market analyst Lark Davis took to social media platform X (formerly Twitter) to share insights on Ethereum’s potential. He noted that various on-chain metrics and market behaviors indicate an impending breakout for the ETH price. Notably, Ethereum has been outperforming Bitcoin (BTC) in the second quarter of the year, suggesting growing investor confidence. The recent Pectra upgrade has improved Ethereum’s scalability and reduced its inflation rate, making it more attractive to investors. Related Reading: Bitcoin Price Crash To $100,00 Loading: Next Targets Revealed As Bears Take Over Additionally, the expert highlights that with exchange balances hitting seven-year lows and substantial inflows into Ethereum exchange-traded funds (ETFs), it appears that larger investors are accumulating ETH for the long term. Despite these bullish indicators, Davis cautioned that not all market participants share this optimistic outlook. Betting markets on Polymarket currently assign only a 27% chance that Ethereum will reach a new all-time high by 2025. Critical Support For Ethereum Amid Political Disputes The broader cryptocurrency market also faced challenges on Thursday, with total market capitalization dropping from $3.30 trillion to approximately $3.12 trillion. Bitcoin, XRP, and Solana (SOL) were among the notable cryptocurrencies experiencing losses, retracing by 3%, 5%, and 6%, respectively. In a separate but related development, tensions between US President Donald Trump and his former adviser Elon Musk have surfaced, adding to the day’s market volatility. Trump expressed disappointment over Musk’s criticism of a key tax and spending bill from his administration, suggesting that their “great relationship” may be nearing its end. Musk retaliated by accusing Trump of ingratitude, claiming his support was instrumental in Trump’s election victory. Related Reading: Crypto Analyst Warns: This Bitcoin Bull Cycle Looks Nothing Like 2017 or 2021 This public dispute has drawn attention to the intersection of US politics and cryptocurrency, a dynamic that market analyst Income Sharks noted in a recent post on Elon Musk’s social media site, X. The analyst remarked on the swift impact of political conflicts on crypto markets, emphasizing that the Ethereum price has not yet lost critical support levels. Income Sharks, in his analysis, identified the $2,390 mark as a crucial support point for the altcoin in the immediate term, which could determine the next upward targets of $3,000 and $4,000. While trading at $2,406 when writing, Ethereum finds itself well below its all-time high reached during the market’s last bullish cycle in 2021. As of now, the altcoin stands 50% below its record of $4,878, according to CoinGecko data. Featured image from DALL-E, chart from TradingView.com
Ethereum prices gained by over 4.6% in the past day to reach a peak of $2,634 before experiencing a slight retracement. In line with the bullish rhythm of the crypto market, the prominent altcoin has recorded significant price leaps in the past month, resulting in a total gain of 61.92% in this period. However, price patterns indicate that Ethereum is headed for a major encounter at $4,000, a price level with potential to neutralize or validate the current price uptrend. Related Reading: Ethereum Multi-Year Consolidation Could Spark A Parabolic Move – Details ETH Must Surpass Long-Standing Resistance To Ignite Mega Rally In an X post on May 16, OKC partner and crypto analyst Ted Pillows highlighted an important price level for Ethereum amidst the ongoing bull trend. Notably, ETH has moved by over 60% in the past few weeks from $1400 to trade above $2,600. Based on the growing chart pattern and underlying market fundamentals, the altcoin is likely to maintain this uptrend in the short term. According to Ted Pillows, $4,000 can be described as a crucial price region for ETH bulls based on historical price data. Notably, Ethereum has been trading within a massive symmetrical triangle that began in Q3 2020 and has lasted over 1,500 days. The $4,000 price level currently sits just below the upper boundary of this triangle, representing a significant opposition to further price gains. In 2024, Ethereum popularly faced rejection thrice at the $4,000 price level, even amidst general market upswings, raising speculations over the altcoin’s long-term profitability. If the ETH bulls can sustain the current market demand, another encounter with this major resistance level is likely on the cards. To confirm the altcoin’s participation in a brewing crypto bull run and altseason, Ethereum must push past $4,000, flipping this price zone into an effective support level that could strengthen the current market structure with bullish targets set as high as $12,000. However, if ETH faces another rejection at this resistance zone, a price correction could occur with potential for price lows around $1,700 in line with the lower boundary of the symmetrical triangle. Related Reading: XRP Price Explosion To $5.9: Current Consolidation Won’t Stop XRP From Growing ETH Institutional Interest Waxes Strong In other news, the ETH market continues to see significant market interest from institutional investors. In a separate X post, Ted Pillows reports that UK-based investment manager Abraxas Capital now holds 257,165 ETH, valued at $655 million, following a continuous accumulation spree over the past few days. Institutional investments are strong bullish signals of long-term profitability for the ETH market as they indicate a strong demand from these traditional financial institutions with relatively high amounts of liquidity. At press time, crypto’s largest altcoin trades at $2,490, indicating a 6.95% gain in the past week. Featured image from iStock, chart from Tradingview
Analysts and experts say AI agents, a swathe of major network upgrades, and regulatory improvements in the US are all things Ethereum fans can be excited about in 2025.
In a price prediction shared on X, Tom Dunleavy, Chief Investment Officer (CIO) at MV Global—formerly known as Master Ventures—outlined his bullish projections for major cryptocurrencies in 2025. MV Global is a blockchain-focused venture studio renowned for building infrastructure companies aimed at advancing blockchain adoption, with investments spanning prominent entities such as Coinbase, Kraken, Ripple, Circle, and Bitfinex. Dunleavy’s forecast positions Bitcoin (BTC) at a target of $250,000 and Ethereum (ETH) at $12,000 by the end of 2025. Additionally, he anticipates Solana (SOL) reaching $700. These projections are underpinned by an analysis that draws parallels between historical economic shifts and current policy movements within the United States. Dunleavy draws a comparison to the 1970s in the United States, specifically referencing President Nixon’s termination of the Gold Standard in 1971 as a pivotal economic shift. “If we look at the 1970s in the US, then President Nixon’s ending of the Gold Standard in 1971 could be seen as a similar pivot point as the shift we see with the Trump administration’s embrace of crypto,” Dunleavy stated. Related Reading: Anthony Scaramucci Foresees China Bitcoin Strategic Reserve In 2025 He noted that following Nixon’s move, gold prices surged approximately sixfold within three years before experiencing a retracement, ultimately reaching a peak of twenty times the initial value by the decade’s end. Dunleavy suggests that a comparable trajectory could unfold for Bitcoin and altcoins under the upcoming administration’s policies. Quarterly Bitcoin And Crypto Predictions For 2025 Q1 2025: MV Global anticipates a sharp uptrend fueled by increasing excitement surrounding the new administration. “Trump’s first 100 days lead to a realization that the crypto agenda is actually top of mind,” Dunleavy explained. He expects a rapid market start, facilitated by the Biden administration’s cooperation in the transition process. Significant legislative advancements are anticipated within the first 100 days, particularly concerning market structure and stablecoins. Related Reading: Bitwise Forecast: Bitcoin, Ethereum, And Solana Poised For Record Highs In 2025 “We also place a higher chance on meaningful progress towards a BTC strategic reserve and the game theory of subsequent nation state adoption,” Dunleavy adds. However, a market correction is expected as the US tax season approaches, with March historically being a challenging month for Bitcoin. Q2 2025: The second quarter is projected to witness a gradual yet consistent upward movement as institutional investors increasingly enter the asset class. “ Slow but steady march upward as more institutions come on board,”Dunleavy writes. He highlights the potential approval of Bitcoin and Ethereum ETFs by major Registered Investment Advisors (RIAs) and brokerage firms such as Merrill Lynch and Charles Schwab. “ETH leads as the lack of a SOL ETF is a short-term impediment to institutional flows,” he noted, indicating that Ethereum may benefit more immediately from institutional adoption compared to Solana. Q3 2025: Summer is expected to bring a period of consolidation, with prices experiencing sideways movement. “Summer lull. Prices chop down,” Dunleavy predicts. The introduction of a spot Solana ETF or other crypto ETFs could provide a catalyst to break this stagnation. September is identified by the CIO as a critical month for potential Securities and Exchange Commission (SEC) rulings, which could significantly influence market dynamics. Q4 2025: The final quarter is anticipated to see a robust surge towards the year’s end, culminating in a blow-off top scenario. “Strong flurry into year end. Blow off top that we think bleeds into Q1 2026. This cycle peaks well into 2026 as the passive ETF bid keeps a very strong floor,” Dunleavy concludes. At press time, BTC traded at $100,812. Featured image created with DALL.E, chart from TradingView.com
In a significant market development, Ethereum (ETH) has surpassed the $4,000 mark for the first time in over ten months, closing the first week of December with a remarkable 40% surge in the weekly time frame. This upswing has been closely tied to a broader rally in the crypto market, particularly with Bitcoin (BTC), which recently reached new all-time highs. Ethereum Surges 61% As ETF Demand Grows According to Bloomberg, Ethereum exchange-traded funds (ETFs) in the United States experienced unprecedented demand, recording a daily inflow of $428 million on Thursday alone. This surge in investment interest reflects a growing confidence in Ethereum, particularly following Donald Trump’s election victory on November 5, which ignited a bullish sentiment across the crypto landscape. Since then, Ethereum has outperformed Bitcoin, boasting a staggering 61% increase in value. Related Reading: Trump’s Crypto Czar David Sacks Is Super Bullish For Solana: Here’s Why The appointment of Paul Atkins to lead the Securities and Exchange Commission (SEC) has further bolstered enthusiasm for Ethereum. Atkins, a proponent of pro-crypto regulation and a member of the advisory board for the advocacy group Token Alliance, is seen as a positive force for the crypto industry. Bloomberg suggests that under his leadership, the restrictions preventing investors from earning yield on staked Ether through ETFs could be reconsidered, enhancing the appeal of these investment vehicles. Altcoin Season In Full Swing Nick Forster, founder of the crypto trading platform Derive.xyz, noted, “Now that Bitcoin has hit $100,000, it appears that investors are seeking the next opportunity.” Forster highlighted that Ethereum remains significantly below its all-time high of $4,878 reached in November 2021, prompting many investors to shift their focus and explore the potential for gains in altcoins like ETH. The increasing interest in Ethereum is also evident in the derivatives market, where open interest in Ether futures contracts on CME Group Inc. has reached record levels, significantly outpacing the growth in Bitcoin futures. Le Shi, managing director at market-making firm Auros, remarked that US institutions tend to favor regulated investment vehicles, resulting in a higher concentration of activity in CME Ether futures and ETH ETFs. Additionally, the founders of Glassnode—Yan Allemann, Jan Happel, and Rafael Schutlze-Kraft—have pointed to the resilience of altcoins amid Bitcoin’s recent volatility. Related Reading: Dogecoin Still In Consolidation – Analyst Expects $0,63 If We Get A Breakout Despite Bitcoin experiencing a 13% dip, altcoins have largely maintained their value, indicating a robust market sentiment. The Altcoin Index hitting 100 further confirms that the market is in the midst of an “Altcoin Season,” with expectations for significant moves as the weekend approaches. Looking ahead, the outlook for the market’ second largest crypto remains optimistic, with increasing expectations for both institutional and retail investments as the current market cycle unfolds. Analysts have already predicted that gains could soon surpass Ethereum’s previous all-time price, setting the stage for a potentially transformative period in the cryptocurrency market. At the time of writing, ETH trades at $3,990. Featured image from DALL-E, chart from TradingView.com
Ether is breaking out of a similar symmetrical triangle pattern that propelled XRP's prices from around $0.50 to around $2.90 within a month.
Recent reports have revealed that Ethereum has had a challenging run, underperforming compared to other major cryptocurrencies. However, despite this, some positive signs may be on the horizon. According to a CryptoQuant analyst, Percival, Ethereum’s open interest has increased significantly, indicating rising investor optimism for a potential rally. Related Reading: Ethereum Whales Are Quietly Accumulating—Is A Major Price Breakout Coming? Potential For Ethereum Rally And Longs Benefit According to the data shared by Percival, Ethereum’s open interest stands at $9.6 billion, marking a 28.57% increase from August, although it is still below the $13 billion recorded in June. The rise in open interest points to expectations of an upward price movement, with many traders positioning themselves for increased demand. Percival noted that several factors, including potential Federal Reserve interest rate cuts and a growing focus on the future of tokenization on the Ethereum blockchain, may fuel this uptick. This shift could drive more interest toward decentralized finance (DeFi) protocols, making Ethereum more attractive for investors looking for long-term gains. Percival also highlighted that Ethereum’s Relative Strength Index (RSI) is at 61, suggesting that the market is overheated. A “convergence” between open interest and RSI levels indicates that price corrections will likely be short-lived, providing opportunities for traders to position themselves for a market rebound. The analyst estimated that Ethereum may experience a correction of around 7% to 9% before rallying again, favoring long positions as traders await a potential rise in both price and demand. The analyst particularly wrote in a post on the CryptoQuant QuickTake platform: The convergence of the highest lows in the RSI suggests a potential for a less pronounced correction, estimated to be between 7% and 9%. This scenario favors long positions, with traders patiently waiting for a market rebound to confirm new highs and higher lows. ETH’s Path To A Bullish Breakout At the time of writing, Ethereum trades at $2,611, down slightly by 0.1% in the past 24 hours. This comes after a strong week where the cryptocurrency saw a 9.3% increase and a nearly 15% rise over the past month. According to another prominent crypto analyst, Ali, Ethereum could be on the verge of a significant rally. In a recent post on X, Ali revealed that Ethereum has recently touched the lower boundary of a channel, a level that has historically led to an average 130% price surge. Related Reading: Crypto Watch: Ethereum Poised for Upside Break! According to Ali, should this pattern continue to hold, Ethereum could potentially climb to $6,000 as long as it maintains its key support level of $2,300. Every bounce off this channel’s lower boundary has historically led to an average 130% price increase for #Ethereum. If this pattern holds, a similar move could push $ETH to $6,000—provided the key $2,300 support level stays intact. pic.twitter.com/CFpLrQWEih — Ali (@ali_charts) October 14, 2024 So far, despite ETH’s market’s volatility, the asset has managed to maintain its price above the critical $2,300 support level, which lends credibility to the theory that a bullish breakout could be on the way. Featured image created with DALL-E, Chart from TradingView
An analyst has explained how Ethereum could see a run toward the $6,000 level if this historical pattern continues to hold for the asset’s price. Ethereum Ascending Channel Could Reveal Its Next Destination In a new post on X, analyst Ali Martinez has discussed a pattern that the 1-week price of Ethereum has potentially been following during the last couple of years. The pattern in question is the “Ascending Channel” from technical analysis (TA), which is a type of Parallel Channel. In a Parallel Channel, the asset consolidates between two parallel trendlines, with the upper level connecting successive tops and the lower bottoms. Related Reading: Solana Extends Rally By 4%, But This Factor Could Lead To A Top These two levels are slopped upwards in the case of an Ascending Channel, as already hinted at by its name. Thus, an Ascending Channel only forms when the asset sets higher highs and lows. The lower level of the pattern can support the price, while the upper one may act as resistance. If either of these levels break, the asset could see a continuation of trend in that direction; a surge above the top line can be a bullish sign, while a drop under the bottom line can foreshadow a bearish outcome. There is also another type of Parallel Channel, called the Descending Channel, which works much in the same way as the Ascending Channel, except for the fact that it points downwards. Now, here is the chart shared by Martinez that shows the Ascending Channel that the 1-week Ethereum price could be trading inside right now: As displayed in the above graph, the 1-week Ethereum price has recently been retesting the bottom level of this potential Ascending Channel pattern. The analyst has highlighted what happened the last few times that the coin made a retest of this line. “Every bounce off this channel’s lower boundary has historically led to an average 130% price increase for Ethereum,” notes Martinez. Thus, if the Ascending Channel continues to hold for the cryptocurrency, it could benefit from another surge shortly “If this pattern holds, a similar move could push ETH to $6,000—provided the $2,300 support level stays intact,” says the analyst. This support level naturally corresponds to the channel’s bottom line, a drop beyond which could potentially invalidate the formation. Related Reading: Bitcoin Whales Are Going Through A ‘Generational’ Shift, CryptoQuant CEO Reveals Given this pattern forming in its weekly chart, It remains to be seen how the Ethereum price will develop in the coming months. ETH Price Ethereum has enjoyed a sharp 7% rally during the past 24 hours, which has taken its price above the $2,600 mark. Featured image from Dall-E, charts from TradingView.com
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has recently lagged behind other top tokens, posting losses on both a 24-hour and weekly basis. Despite this downturn, some analysts believe that if Ethereum can overcome critical resistance levels in the near future, it may follow seasonal trends typically seen in “Uptober,” potentially leading to a price recovery. Ethereum Struggles To Break $2,800 Resistance Technical analyst Daan Crypto Trades recently pointed out that Ethereum has yet to make a higher high, a feat achieved by Bitcoin (BTC) last week. In order to reverse its current trend, the analyst explains that ETH needs to break through the $2,800 level, which coincides with the daily 200 exponential moving average (EMA). Currently, Ethereum’s price has retraced over 1% in both the last 24 hours and the past week, currently trading at $2,611. This decline contrasts with the gains recorded over the past two weeks (14%) and the past month (4%). Related Reading: XRP Price Ready For 4x Jump To $2.6 As Major Bullish Pattern Breaks Occurs Despite marking a higher low of $2,640 at the end of the previous week following a nearly 20% drop on September 6, where prices fell to $2,150, ETH remains far from its yearly high of nearly $4,000 achieved in the first quarter of this year and its all-time high of $4,878 from November 2021. In contrast, Bitcoin recently reached a two-month high of $66,500, moving closer to its all-time high of $73,700 set in March, highlighting the stark difference in performance between Bitcoin and Ethereum during this period However, much like Daan Crypto Trades, other analysts maintain a bullish outlook for Ethereum if important support levels are held by the bulls and if the price can break through key resistances. Analysts Forecast New All-Time High In Early 2025 Market expert Guru Vedas has recently noted that ETH appears to have hit a curve support on its two-hour chart, with support levels between $2,550 and $2,600. He suggests that a recovery could be imminent from this support base. Another analyst, known as “Man of Bitcoin,” echoed this sentiment, asserting that ETH could continue to rise as long as it remains above $2,560. He identified key support levels for a larger wave, ranging from $2,539 to $2,351, which are critical for any near-term recovery. Related Reading: US Spot Bitcoin ETFs Become Second-Largest Holder Of BTC Behind Satoshi Adding to the optimism, analyst Ted Pillows highlighted that Ethereum is forming a similar fractal pattern to one observed during its previous bull cycle, which saw prices surge from $1,600 to $4,000. The analyst predicts that the ETH price could reach between $4,000 and $4,400 by the end of this year, with a potential new all-time high anticipated in the first quarter of 2025 above $4,800. Featured image from DALL-E, chart from TradingView.com
Amid Ethereum’s continuous free fall in price, renowned crypto analyst Michael Van De Poppe highlighted the asset’s current weakness in a post on X earlier today and when there could be a potential rebound. Van De Poppe’s outlook comes at a time when Ethereum, the second-largest cryptocurrency by market capitalization, has continued to experience significant downward pressure, much like its counterpart, Bitcoin. In the past 24 hours, ETH has seen a decline of 3.7%, bringing its current trading price to $2,491. Related Reading: Is Ethereum Finally Over the Slump? These 2 On-Chain Metrics Suggests a Bullish Turn Ethereum Outlook: When Will A Price Recovery Happen? Van De Poppe noted in the post that Ethereum was rejected at the 0.046 BTC level and is now approaching high timeframe support areas. The analyst mentioned the possibility of a bullish divergence forming, which could lead to a rally later this week or next. However, this potential recovery is contingent on ETH finding support and reversing its current trajectory. $ETH is super weak, it remains to be the case. Rejected at 0.046 BTC and is currently falling towards HTF support areas. There might be a case of a bullish divergence standing up, but then it should be rallying from later this week into next week. pic.twitter.com/liVwA7moSm — Michaël van de Poppe (@CryptoMichNL) August 28, 2024 Another crypto analyst, Javon Marks, shared a more optimistic outlook for Ethereum, drawing parallels with Bitcoin’s recent performance. Marks suggested that Bitcoin’s earlier successful breakout above $67,000 hints at what’s next for ETH. He speculated that if Bitcoin could continue to climb, it could pave the way for Ethereum to reach its target of $4,811 or higher. However, this potential recovery depends on Bitcoin’s ability to maintain its upward momentum and break above key resistance levels. Marks noted: Bitcoin climbing even more for ETH’s ‘following’ fulfillment to $4811.6 could result BTC breaking above $67,559, which opens up $116,000+ and much, much more room to lead the crypto market into heightened bullish phases. Simplicity. Market Liquidations Surge As Traders Bet On Rising Prices Meanwhile, the recent price drops in Ethereum and Bitcoin have significantly impacted traders, with many being caught off guard by the sudden downturn. According to data from Coinglass, over 92,000 traders were liquidated in the past 24 hours, resulting in total liquidations of $325.03 million. Ethereum accounted for $86 million of these liquidations, with $67.90 million coming from long positions. This suggests that many traders expected ETH to rise in price, only to be met with the opposite outcome. Bitcoin, too, saw substantial liquidations, accounting for $111.78 million of the total. Related Reading: Ethereum Price Dives: Is Bearish Control on the Horizon? Similar to Ethereum, the majority of these liquidations were from long positions, indicating that many traders did not anticipate the price decline. Featured image created with DALL-E, Chart from TradingView
Ethereum ETFs (exchange-traded funds) began trading on Tuesday, generating significant volume within the first 2 hours of trading. Interestingly, the Ethereum ETFs ranked among the top 1% regarding ETF volume. Related Reading: Analyst Says Solana Price Will Surge 1,000% To $1,800, Here’s When Ethereum ETFs Surpass Traditional Launch Volumes According to Bloomberg ETF expert Eric Balchunas, the ETH ETFs traded $361 million in the first 90 minutes on launch day, surpassing the typical volume seen at the launch of traditional ETFs. Blachunas said: Here’s where we at after 90 minutes. $361m total. As a group that number would rank them about 15th overall in ETF volume (about what $TLT and $EEM trade), which is Top 1%. But again compared to a normal ETF launch, which rarely see more than $1m on Day One, all of them have cleared that number and then some. Matthew Sigel, head of digital asset research at asset manager VanEck, highlighted the significance of these figures in the first hours of trading, noting that Ethereum ETFs saw more than 50% of trading volume compared to Bitcoin’s $610 million on day one, indicating strong investor interest in Ethereum. However, how these numbers will fare at the close remains to be seen. Bitcoin ETFs saw $4.6 billion in volume on their first day of trading in January, which may indicate the future performance of these newly approved index funds for the second-largest cryptocurrency on the market. ETH’s Price Targets Soar Crypto analyst Doctor Profit shared a report highlighting a potentially massive parabolic move for Ethereum’s price this year in the wake of the expected inflows in the new Ethereum ETF market. While some anticipate a correction due to the “sell the news” phenomenon, Doctor Profit argues that the market has already factored in the ETF launch but has yet to consider the significant inflows of USD that will flood into the Ethereum ETFs. With Ethereum’s market cap being three times smaller than Bitcoin’s, Doctor Profit believes that every dollar invested in ETH is expected to have three times the price impact compared to Bitcoin, positioning Ethereum favorably for substantial price gains. Furthermore, the analyst contends that while Ethereum’s Grayscale ETH Fund sell pressure is comparable to the Bitcoin ETF launch, the impact is expected to be less severe. Related Reading: Helium (HNT) Rockets In Value With 41% Rally – Here’s Why Looking ahead, Doctor Profit has set expected price targets for Ethereum in the coming months, including a potential target between $4,500 and $5,500 by Q3 2024, indicating steady but modest growth. Moving into Q4 2024 and Q1 2025, the price range is expected to expand from $5,500 to $8,000. However, it is in Q2 2025 that Ethereum is expected to significantly jump, with price targets ranging from $8,000 to $14,000. At the time of writing, ETH is trading at $3,444, showing sideways movement with no significant change from yesterday’s price, despite the hype surrounding the launch of the ETF market. Featured image from DALL-E, chart from TradingView.com
The price of Ethereum could be bolstered by inflows into upcoming U.S. spot ETFs, while Bitcoin faces headwinds from Mt. Gox creditor repayments.
As the highly anticipated launch of the first spot Ethereum ETFs in the United States nears, experts are predicting a significant price appreciation for the second-largest cryptocurrency in the market. Ethereum ETFs On The Horizon According to a recent Reuters report, the US Securities and Exchange Commission (SEC) could approve Ethereum ETFs as soon as July 4, as discussions between asset managers and regulators enter the final stages. Industry executives and other participants who requested anonymity due to the confidential nature of the talks revealed that the process of amending the offering documents has progressed to resolving only “minor” issues, and approval is “probably not more than a week or two away.” Related Reading: Bitcoin Battling Bearish Headwinds: Is The Sell-Off Over? According to Morningstar Direct data, the launch of Bitcoin-based ETFs in the US in January was a major success, drawing around $8 billion in assets. By late June, these nine new products had nearly $38 billion in assets, although the holdings of Grayscale Bitcoin Trust – which converted its $27 billion BTC trust into an ETF simultaneously – dipped to $17.8 billion. However, experts believe the launch of the new spot Ethereum ETFs may not be as impressive as the Bitcoin ETF debut. James Butterfill, head of research at Coinshares, noted that “Ethereum is not the same size in terms of market cap, nor does it have the same volumes” as BTC. Given the differences in market size and nature of the two cryptocurrencies, Bryan Armour, an ETF analyst at Morningstar, believes inflows may be much more muted when the Ethereum ETFs launch. “With Bitcoin, there had been pent-up demand for a decade, and investor interest was off the charts,” Armour said. “This just isn’t going to command the same excitement.” However, not everyone shares the same cautious outlook. ETH Eyes Potential Rally Toward $7,500 Quinn Thompson, the founder and CIO of Lekker Capital, has recently stated that the market is in the middle of “one of the most obvious and attractive crypto buying opportunities of recent memory.” Thompson further claimed that it was “cool” to be bullish in the past, but now, it appears that “Twitter has become a contest to see who can have the most negative ETH ETF take.” Thompson further noted: Personally, I think ETH will reach $7,000 and BTC will make its first attempt at $100,000 by the election in November. The Glassnode co-founders also shared a bullish price analysis for Ether, stating that if investors look at Ether’s history, similar patterns are developing as in the early stages of the 2021 bull market. They believe the current structure gives a target of around $7,500 as a final high for Ether, mirroring the Fibonacci extension seen in 2021 and implying a strong rally in Ether “soon!” Related Reading: Dogecoin Profitability Rises To 75% As Shiba Inu Plunges To 52% While caution remains regarding the possibility of further price declines, experts argue that such a scenario would require a new exogenous event to occur. Overall, market sentiment is leaning towards Ethereum reaching $7,000 and Bitcoin’s first attempt at $100,000. At the time of writing, ETH was trading at $3,460, up more than 3% over the past 24 hours as the broader market recovers from the corrections seen over the weekend and into the beginning of the week. Featured image from DALL-E, chart from TradingView.com
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
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
Michael Nadeau, founder of The DeFi Report, has published a deep dive into the implications of the approval of spot Ethereum (ETH) Exchange-Traded Funds (ETFs) on the cryptocurrency’s price trajectory. This analysis follows on the heels of a significant regulatory nod from the US Securities and Exchange Commission (SEC), which approved the 19b-4 applications for eight leading financial entities — Grayscale, Bitwise, BlackRock, VanEck, Ark 21Shares, Invesco, Fidelity, and Franklin. These approvals, granted under a collective omnibus order on May 23, set the stage for the final steps, which involve awaiting S-1 registrations’ sign-offs before these spot ETFs can start trading. Why Ethereum Could Skyrocket To $15,000 The report draws upon projections by ETF experts at Bloomberg, such as James Seyffart and Eric Balchunas, suggesting that the inflows into Ethereum ETFs could range between 10-20% of those experienced by Bitcoin ETFs. “The logic behind these projections rests on a few key observations—currently, there is less institutional interest in ETH, and it is inherently more complex than BTC. Also, the ETH futures ETF volume is considerably less than BTC’s, ranging from 10-20%, and ETH spot trading volumes are roughly half of BTC’s,” Nadeau explains. He added that “ETH is more difficult to understand than BTC. ETH futures ETF volume is less than BTC (10-20%). ETH spot trading volumes are less than BTC (about 50%). ETH is about 1/3 of BTC’s market cap.” Related Reading: Ethereum Spot ETFs: Report Shows Grayscale Could Keep ETH Price Down With $110M Daily Outflows However, according to the researcher, the dynamics of Ethereum offer a unique perspective when compared to Bitcoin. “Ethereum validators do not incur the substantial operating expenses that Bitcoin miners do, which mitigates the structural sell pressure on the asset,” Nadeau states. This difference is critical in understanding the supply-side dynamics of Ethereum compared to Bitcoin. Nadeau also delves into the current status of Ethereum on-chain activities. A substantial portion of Ethereum, approximately 38%, is effectively ‘soft locked’ across various mechanisms like staking contracts and DeFi applications. This scenario, as Nadeau points out, “helps reduce the available circulating supply, contributing to a decrease in ETH balances on exchanges to levels not seen since 2016—currently, this stands at less than 11% of the circulating supply.” The concept of reflexivity in Ethereum’s market behavior also receives significant attention in Nadeau’s report. “ETH is more reflexive than BTC. This reflexivity could be expressed with price action leading onchain activity, which leads to more ETH burned, which can further drive narratives, more price action, more onchain activity, and more ETH burned,” Nadeau elaborates, suggesting a cyclic effect that could significantly amplify Ethereum’s market presence and valuation. Related Reading: Ethereum Deposits At 4-Month High: Whales Preparing For Selloff? Exploring potential market scenarios, Nadeau questions the extent of rebalancing that might occur from spot Bitcoin ETF holders towards Ethereum, the attractiveness of a 50/50 BTC and ETH allocation, and the potential shift of institutional focus towards Ethereum. He hypothesizes, “If momentum hits ETH, will we see the ‘reflexivity flywheel’ kick into gear? How many institutions are on the sideline right now, having missed BTC? Will they go all in on ETH?” In concluding his analysis, Nadeau presents a valuation framework that anticipates the cryptocurrency market reaching a $10 trillion market cap. He states, “Given our fundamental views on ETH, we think it’s more likely that ETH will outperform Bloomberg’s projections of 10-20% of BTC’s net inflows. Under this scenario” and projects that “ETH could command a market cap at cycle peak of $1.8 trillion, which would price ETH at approximately $14,984 (3.9x), assuming no change in supply.” He continues, “For reference, if Bitcoin reaches a $4 trillion market cap, that would price BTC at $202,000 (2.8x)” at cycle peak. At press time, ETH was trading at $3,823, still around 29 % away from its 2021 all-time high. Featured image created with DALL·E, chart from TradingView.com
As the US Securities and Exchange Commission (SEC) approved all the spot Ethereum ETF applications, despite increased regulatory uncertainty surrounding the cryptocurrency, investors are becoming more optimistic about the potential for ETH’s price to reach new heights. Bullish Sentiment Surrounds Ethereum ETF Approval DeFiance Capital Founder and CIO Arthur Cheong predicts that ETH could reach an annual high of $4,500 before the newly approved index funds begin trading, surpassing its mid-March high of $4,096. This projection falls just short of ETH’s all-time high of $4,878 during the 2021 bull run. In addition, a survey conducted by WuBlockchain in the Chinese community revealed that 58% of respondents believe that ETH has the potential to rise to $10,000 or even higher in this market cycle. Related Reading: Kickstarting The Bitcoin Bull Run: Expert Says $70,000 Is The Level To Beat The recent regulatory pivot by the SEC towards approving Ether ETFs has intensified bets on further price gains. In the seven days following the announcement, ETH experienced a 26% surge, marking the largest weekly advance since the 2021 crypto bull market. This development brings hope to speculators, considering the success of US spot Bitcoin ETFs, which have amassed $59 billion in assets since their record-breaking debut in January. However, spot Ethereum ETFs will not participate in staking, earning rewards by pledging tokens to maintain the Ethereum blockchain. This omission could potentially dampen interest in these funds in comparison to holding the tokens directly. Although additional SEC approvals are required before issuers such as BlackRock and Fidelity Investments can launch their products, the timeline for these releases remains uncertain. As of now, ETH is trading around $3,900, with expectations of further upside potential. Options Bets Signal Potential Climb To $5,000 According to a Bloomberg report, analysts such as Pepperstone Group Head of Research Chris Weston believe that pullbacks in ETH are buying opportunities as the risk remains skewed to the upside. Interestingly, as seen in the chart below, some traders are placing bullish options bets, with concentrations signaling a potential climb to $5,000 or more. Furthermore, ETH’s volatility, as indicated by the T3 Ether Volatility Index, is expected to be greater than that of Bitcoin, highlighting the potential for larger price swings in the second-largest digital asset. Related Reading: Ripple CTO Addresses Curious Price Link Between XRP And XLM Insights from the futures market, particularly the level of open interest in Chicago Mercantile Exchange (CME) Ethereum futures, provide evidence of institutional demand for regulated exposure to cryptocurrencies. While open interest in CME Ether futures is growing, it remains significantly lower than that of CME Bitcoin futures. This suggests relatively less institutional exposure to Ether and could potentially impact initial inflows into Ether ETFs. Nevertheless, as the approval of Ethereum ETFs opens up new avenues for investment and speculation, the market is closely watching ETH’s price performance, with bullish sentiment and optimistic predictions prevailing among investors. Featured image from Shutterstock, chart from TradingView.com
In recent weeks, Ethereum has displayed subtle signs of recovery amidst a generally bearish crypto market, with the altcoin mimicking Bitcoin’s modest uptrend. Despite Ethereum’s price increasing slightly by 0.2% over the last 24 hours, a parallel trend that might significantly affect Ethereum’s economic model has been unfolding beneath the surface. Related Reading: Is Ethereum Back? Record 267,000 New Users Spark Speculation Decline In Network Activity Reduces ETH Burn April witnessed Ethereum’s ETH burn rate hitting an annual low, primarily due to a significant decrease in network transaction fees. These fees have typically fluctuated just below 10 gwei this year, but recent weeks have seen them dip to some of the lowest levels, directly influencing the rate at which ETH is burned. This reduced burn rate is evidenced by the stark drop in daily burned ETH, which reached a low of 671 ETH in the past day a notable decrease from the daily figures of 2,500–3,000 ETH seen earlier in the year. Such a decline in burn rate is not merely a statistical anomaly but a reflection of broader shifts within the Ethereum network. A significant factor contributing to the lowered gas fees is the increased migration of network activities to Layer 2 solutions, which enhance transaction speeds while lowering costs. Moreover, innovations like blob transactions, introduced in Ethereum’s recent Dencun upgrade, have further optimized costs on these secondary layers. Notably, Blobs are a feature introduced to enhance Ethereum’s compatibility with Layer 2 solutions like zkSync, Optimism, and Arbitrum by efficiently managing data storage needs. This functionality is part of the Dencun upgrade, which integrates proto-danksharding via EIP-4844. While beneficial in reducing transaction fees, these technological strides pose challenges to Ethereum’s deflationary mechanisms. This upgrade introduced a new fee structure in which a part of every transaction fee, the base fee, is burned, potentially reducing the overall ETH supply. However, with decreased transaction fees, the anticipated deflationary pressure via burning has softened, signaling a shift to a more inflationary trend in the short term. According to Ultrasoundmoney, Ethereum’s supply dynamics have swung to a mildly inflationary mode with a growth rate of 0.498%. This shift could realign if network activity intensifies, leading to increased transaction fees and, consequently, higher burn rates. Ethereum Market Response Despite these underlying network dynamics, Ethereum’s market price has struggled to regain its former highs above $3,500. The asset trades around $3,085, reflecting a slight downturn over recent weeks. This price behavior underscores the broader market’s reaction to internal network changes and external economic factors, such as regulatory struggles from the US Securities and Exchange Commission (SEC) and macroeconomic uncertainties. Related Reading: Ethereum “Has Been A Major Disappointment”: Trader Weighs In On This Crypto Cycle Looking ahead, the trajectory of Ethereum’s gas fees and subsequent ETH burn rate will be crucial in determining the sustainability of its economic model. Featured image from Unsplash, Chart from TradingView
Despite being beaten off the starting line by Solana and other altcoins, some traders now believe Ethereum is primed for a move.