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Can Ethereum ETFs Push ETH Price Past $5,000 by Q3?

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As July approaches, spot Ethereum ETFs, which received the US SEC partial green light on May 23, near their official launch. Many investors wonder if the price of Ethereum (ETH) will follow Bitcoin’s (BTC) reaction to its related financial instruments in January.

That answer, however, lies in the future, which may begin in a few days. While waiting, the on-chain analysis provides actionable insights that can predict if the altcoin is following a likely pattern. 

The Altcoin Investors Are in High Spirits

Amendment of registration documents is one factor that has delayed the live trading of the spot Ethereum ETFs. However, in a recent interview, SEC Chair Gary Gensler confirmed that things were going smoothly.

Furthermore, a report from anonymous sources at the regulatory agency reveals that the products will launch on July 4.

Following the development, BeInCrypto monitors holder behavior towards ETH. According to our findings, ETH holders display resolute confidence in the cryptocurrency. We discovered this after examining the LTH-NUPL provided by the analytic platform Glassnode. 

The metric stands for Long Term Holder-Net Unrealized Profit/Loss. It measures the behavior of holders who have owned a cryptocurrency for over 155 days. As seen in the chart below, different colors exist for different sentiments.

Read more: Ethereum ETF Explained: What It Is and How It Works

Ethereum holders bullish sentiment
Ethereum LTH-NUPL. Source: Glassnode

While red indicates capitulation, orange means fear. Yellow indicates optimism, while blue suggests greed. Currently, Ethereum’s LTH-NUPL is in the belief (green) zone. When this happens, long-term investors are confident about a forthcoming price increase.

However, ETH has experienced a 12.75% decline in the last 30 days while it trades at $3,365. In situations like this, the broader sentiment is expected to be bearish. Thus, as perception tilts toward confidence, the much-anticipated development seems to be the reason. If sustained till launch day, it can propel higher demand for ETH.

Ethereum Is Taking Bitcoin Out of the Way

Meanwhile, perception alone cannot push the price. Therefore, we evaluate another indicator that can affect the altcoin’s price, which is the ETH/BTC ratio. This ratio tells whether Bitcoin is outperforming Ethereum or the other way around. Specifically, if the ETH/BTC ratio is high, it means that ETH is performing better than Bitcoin.

However, a low ratio implies that BTC is outperforming ETH. As of this writing, the ratio is 0.055—up 2.33% within the last seven days. This means that today, one ETH can purchase 0.055 BTC.

Ethereum-Bitcoin dominance
ETH/BTC Ratio. Source: TradingView

Should the ratio continue increasing, Bitcoin’s market dominance will decrease. As such, Ethereum can step up while its price may climb much higher. Considering Bitcoin’s performance, the price rose by 56.95% in less than two months after approval.

If ETH mirrors a similar move, the value of the cryptocurrency will be worth $5,308 before the end of the third quarter (Q3). Now, let’s examine the altcoin’s short-term potential.

ETH Price Prediction: It Is Not Priced In

According to the daily chart, the 20 (blue) and 50 (yellow) EMAs sit above Ethereum’s price. EMA stands for Exponential Moving Average. It is an indicator measuring trend direction over a given period.

When the EMA is below the price, it indicates that bulls are defending it. However, the indicator being above the price gives credence to the downside. If conditions remain the same, ETH may drop to $3,278. This position also shows that ETH is not yet priced in.

In simple terms, this means that the economic impact of the upcoming development has yet to be reflected in the current market price. Hence, it can be assumed that the value still has the potential to jump.

However, both EMAs are on the brink of reaching the same point. If this happens, ETH’s price will move sideways, potentially consolidating between $3,355 and $3,610. However, if the 20 EMA flips the 50 EMA (bullish crossover), the altcoin may key into the $3,866 resistance.

Read more: Ethereum (ETH) Price Prediction 2024/2025/2030

ETH price analysis and prediction
Ethereum Daily Analysis. Source: TradingView

In a highly bullish scenario, ETH may replicate its performance between February and March, reaching $4,059 before the end of July. 

In addition, the value of inflows is one major concern that investors have. From comments online, a number of analysts are not sure if the Ethereum ETFs can pull the kind of volume Bitcoin did.

However, a previous prediction placed the inflows at $569 million monthly. Should Ethereum match this volume, a rally past the altcoin’s all-time high may happen within a short period.

But if the reception to the development is “all talk no action”, ETH’s price may nosedive, possibly reaching another 10% decline.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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US Election Day Boosts Bitcoin to $70,000: Further Rally Ahead?

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Bitcoin’s (BTC) price climbed to $70,000 today ahead of the US presidential election, indicating the connection between major political events and cryptocurrency movements. Historically, political uncertainty and significant elections have influenced crypto market sentiment and volatility.

As the election begins, on-chain analysis provides insights into potential future price movements. Analysts are also weighing in on the implications of the election outcome for Bitcoin, with opinions varying on whether the cryptocurrency could continue its upward trend or face downward pressure. Here are all the details.

According to Glassnode, the Bitcoin price increase comes amid a drop in the sell-side risk ratio. This metric shows whether investors are confident about a bullish performance or if conviction is low.

High values in this metric indicate periods when significant amounts of value are being realized, often correlating with increased market volatility. Such periods are commonly seen during the late stages of bull markets.

Conversely, low values suggest periods with minimal value realization and reduced market volatility. This can also signal macro market bottoms, accumulation phases, and environments with lower sell-side pressure and risk, potentially indicating the onset of future bullish trends.

Read More: 7 Best Crypto Exchanges in the USA for Bitcoin (BTC) Trading

Bitcoin selling pressure reduces
Bitcoin Sell-Side Risk Ratio. Source: Glassnode

Therefore, the rise in Bitcoin’s price indicates that selling pressure is low, and the US elections could be bullish for the cryptocurrency.

Regarding this development, Juan Pellicer, Senior Researcher at IntoTheBlock, opined that a Donald Trump win would be good for BTC and the crypto market at large.

“The market appears primed for further upward movement, with the US election serving as a potential catalyst. Sentiment suggests that Trump’s more favorable stance on cryptocurrencies could provide the momentum needed for a decisive breakthrough to a new all-time high.” Pellicer told BeInCrypto

Meanwhile, CryptoQuant’s weekly report says that BTC is at a favorable price level ahead of the elections. It noted that the cryptocurrency is currently not overvalued. Hence, if demand increases, Bitcoin’s price might rally post-election.

For instance, BTC prices rallied by 22% between election day and December 2012. In 2016, it climbed by 37%, while the cryptocurrency saw a 98% increase in 2020. 

Therefore, if past performance influences future trends, the BTC might reach a new all-time high before the end of the year.

Data from the on-chain data provider also showed that demand for Bitcoin has increased. This is similar to the trends of 2016 and 2020. Hence, if sustained, the Bitcoin price might climb well above $70,000 soon.

Bitcoin demand rises
Bitcoin Apparent Demand. Source: CryptoQuant

BTC Price Prediction: $73,000 Possible

On the 1-hour chart, Bitcoin has attempted to break out on four different occasions. However, each time that happened since October 31, the coin faced rejection. However, today, the trend has changed as bulls pushed the cryptocurrency above $68,336.

This breakout has ensured that Bitcoin’s price has risen to $70,288. Furthermore, the Bull Bear Power (BBP) shows that bulls are in control. If sustained, Bitcoin’s price might rally much higher in the coming days.

Read More: Bitcoin (BTC) Price Prediction 2024/2025/2030

Bitcoin US election day price analysis
Bitcoin 1-Hour Analysis. Source: TradingView

If bullish momentum persists, Bitcoin could potentially climb to $73,623 ahead of the announcement of the US election results. However, should BTC face rejection at resistance levels, this forecast might be invalidated, with the cryptocurrency possibly declining to $67,405.

The post US Election Day Boosts Bitcoin to $70,000: Further Rally Ahead? appeared first on BeInCrypto.



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Why Ethereum’s Weak Momentum May Block $2,600 Breakout

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Ethereum (ETH) price is showing signs of weakening strength as polls open across most of the US.

Despite a 24% surge in trading volume over the past 24 hours and a modest 1% price uptick, technical indicators suggest a potential downturn. Here’s a closer look at the factors behind this analysis.

Ethereum to Remain “Under”

Readings from the altcoin’s Super Trend indicator reflect Ethereum’s weak price action. At press time, its red line rests above Ethereum’s price, confirming the potential downward trend.

This indicator helps traders identify the prevailing market trend and potential entry or exit points. It detects changes in price direction and determines support and resistance levels, often signaling when to buy or sell an asset. When the Super Trend line moves above the price and turns red, it signals a bearish trend, often considered a sell signal.

On the ETH/USD one-day chart, Ethereum’s Super Trend line is above the coin’s price at $2740, forming a resistance level that may be difficult to breach if new demand fails to enter the market. When the Super Trend line moves above the price, it acts as a resistance level. This is because the line indicates a potential “ceiling” where the price might face resistance if it attempts to rise. 

Read more: Ethereum ETF Explained: What It Is and How It Works

Ethereum Super Trend.
Ethereum Super Trend. Source: TradingView

Moreover, the setup of ETH’s moving average convergence/divergence (MACD) indicator — which tracks its trend direction, shifts, and potential price reversal points — supports this bearish outlook. As of this writing, ETH’s MACD line (blue) rests below its signal line (orange) and zero line. 

This bearish signal suggests that ETH’s short-term momentum is weakening. Traders often interpret this as a signal to exit long positions and take short ones.

Ethereum MACD.
Ethereum MACD. Source: TradingView

ETH Price Prediction: August 5 Low Is Possible

If buying pressure weakens, Ethereum’s price could fall toward its August 5 low of $2,112, marking a 13% drop from its current value. Conversely, a surge in demand could propel the coin to test resistance at $2,508.

Read more: Ethereum (ETH) Price Prediction 2024/2025/2030

Ethereum Price Analysis
Ethereum Price Analysis. Source: TradingView

A successful breakthrough at this level would set the next target at the Super Trend line resistance of $2,740. Clearing this mark with strong momentum could position Ethereum for a climb toward $2,869 — a level not seen since August.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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AAVE Whales Flood Exchanges,

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AAVE, the governance token of the prominent lending protocol Aave, is experiencing downward pressure as large holders, or whales, initiated significant sell-offs early Tuesday.

This analysis explores potential price targets as AAVE’s value reacts to the intensified selling pressure from whales.

Aave Whales Sell Holdings

In a Tuesday post on X, on-chain sleuth Lookonchain noted that AAVE whales are actively selling off their holdings, with significant withdrawals noted in recent transactions. 

One whale, identified as address 0x7634, withdrew 25,790 AAVE (around $3.39 million) from the Aave protocol and transferred it to the MEXC exchange. Just three hours earlier, another whale, address 0x790c, had removed 7,822 AAVE (approximately $1.04 million) from Aave and sent it to Binance. Additionally, crypto trading firm Cumberland deposited 10,000 AAVE to OKX.

The action of these AAVE whales has resulted in a sharp rise in its exchange flow balance. Santiment’s data shows that at press time, this balance is 53,000 AAVE, representing its single-day highest flow since September 10. 

Read more: How To Use Aave?

AAVE Exchange Flow Balance
AAVE Exchange Flow Balance. Source: Santiment

The Exchange Flow Balance measures the net flow of a cryptocurrency into or out of exchanges, calculated by subtracting the total amount withdrawn from the total amount deposited. An uptick in this metric indicates that large quantities of the asset are being sent to exchanges. Such substantial inflows often signal potential price drops, as the added sell pressure can overwhelm the market’s capacity to absorb it.

AAVE’s negative price daily active address (DAA) divergence confirms this rise in selling pressure in the market. At press time, the metric’s value stands at -39.24%.

This metric compares an asset’s price movements with the changes in its number of daily active addresses. Investors use it to track whether the price movements are supported by corresponding network activity. A negative value suggests weakening demand and potential selling pressure. 

AAVE Price Daily Active Address Divergence.
AAVE Price Daily Active Address Divergence. Source: Santiment

AAVE Price Prediction: Where Risks and Opportunities Lie

AAVE is currently trading at $130.29, hovering slightly above its key support level at $128.45. The diminishing buying momentum signals a potential risk of a drop below this threshold. Should AAVE’s price break through this support, it could fall further to $116.10.

Read more: Top 11 DeFi Protocols To Keep an Eye on in 2024

AAVE Price Analysis.
AAVE Price Analysis. Source: TradingView

Conversely, if market sentiment turns bullish, AAVE might see a reversal, with its price likely rallying toward the next resistance level of $140.79.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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