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

Published

3 days ago

June 27, 2024

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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.

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.

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 Conditions, Privacy Policy, and Disclaimers have been updated.

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Related Topics:ETFs ETH Ethereum Price Push

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Market

Is BONK Price Cursed Against Recovering Its Losses?

Published

2 mins ago

June 30, 2024

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BONK price has noted a substantial decline over the past couple of weeks, bringing the altcoin down to a two-month low.

The mixed signals arising from the broader market cues and investors’ skepticism highlight a different path.

BONK Investors Stand Unsure

BONK price could be noting sideways momentum in the coming weeks because the market is bullish but investors are bearish. The Moving Average Convergence Divergence (MACD) recently experienced a bullish crossover. This is the first such occurrence since the beginning of June.

This technical indicator suggests a potential shift in momentum, which could signal an upcoming upward trend for the cryptocurrency.

However, despite the bullish MACD signal, BONK’s funding rate continues to dwindle. The shift between negative and positive rates indicates that investors remain uncertain about the coin’s future direction, which shows a lack of confidence in sustained positive performance.

The conflicting signals between the MACD crossover and the falling funding rate highlight the cautious sentiment prevailing among BONK investors. While technical indicators might suggest potential gains, the overall market sentiment appears hesitant.

As a result, BONK’s price might witness a sideways momentum building up.

BONK Price Prediction: Sideways Ahead

BONK price fell by 51% throughout June falling to trade at $0.00001950 before recovering slightly, hovering above $0.00002212. In doing so the altcoin spooked the investors who have since been switching sides between bearish and bullish.

However, considering the mixed signals, it appears that BONK will most likely consolidate in the coming days. The range could be $0.00002748 and $0.00002212.

BONK Price Analysis. Source: TradingView

Breaching either of the limits would invalidate the bearish-neutral thesis and result in either a rise to $0.00003000 or a drop to $0.00001375.

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Market

Hamster Kombat aims for Guinness World Record

Published

3 hours ago

June 30, 2024

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The popular clicker game Hamster Kombat is quickly gaining popularity on Telegram and other platforms.

The Hamster Kombat YouTube channel has surpassed the previous leader in subscriber growth and is now vying for a Guinness World Record.

Hamster Kombat’s Guinness World Record Ambition

According to the project team’s post, Hamster Kombat’s YouTube channel has surpassed popular YouTuber Mr. Beast in new subscriber count. While Mr. Beast still holds a larger total number of subscribers, he has never experienced the explosive growth that Hamster Kombat has seen.

Since its launch on May 24, over 30 million people have subscribed to Hamster Kombat’s YouTube channel. Remarkably, over 10 million subscribers joined in six days, 13 hours, and 15 minutes.

Given its swift ascent and widespread popularity, Hamster Kombat has a strong chance of securing a Guinness World Record. The game’s developers are actively pursuing this recognition, aiming to cement their place in gaming history.

Hamster Kombat YouTube Stats. Source: Social Blade

According to Social Blade, the total number of video views from game’s YouTube channel currently stands at 512 million. On average, the content gains 20 million views daily, generating estimated daily revenue between $4,000 and $69,000.

Hamster Kombat’s impressive growth on YouTube is easy to understand. Users receive in-game coins for watching new videos and updating tasks and content daily. The team behind the game also creates educational videos specifically designed for newcomers to Web3.

Telegram Games Keep Making Headlines

Hamster Kombat, a relatively new clicker game that emerged following the hype around Notcoin, appeared at the end of March. Several factors contribute to the project’s meteoric rise:

Accessibility: The game is easily accessible through the Telegram messaging app, eliminating the need for separate downloads.
Social Features: Hamster Kombat leverages Telegram’s large user base, enabling social interactions, friendly competition, and the sharing of scores and experiences.
Cross-generational Appeal: The game attracts a wide range of players, from children to adults, with its cute characters and simple gameplay.
Novelty: The unique and entertaining concept of fighting hamsters offers a refreshing change from traditional fighting games.

The game is played widely, but some governments see it as a threat. For instance, the Iranian government has labeled it a “special project of the West.” A report from BeInCrypto Russia revealed that players in Uzbekistan withdrawing coins from the game could face imprisonment for up to 15 days and hefty fines, highlighting the risks involved.

Amid these problems, Hamster Kombat’s team announced that it has attracted 200 million players. The milestone comes ahead of a planned token generation event in July 2024, which will integrate tokens into the game’s economy.

The game’s growth trajectory is similar to other crypto-powered games like Notcoin, which has become a significant player in the crypto market with a valuation of $1.45 billion. Both games leverage TON blockchain, favored by Telegram for its Web3 integrations. BeInCrypto recently spoke to experts to determine whether tap-to-earn games have a sustainable future or will be forgotten once the hype is over.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Market

Here Are Major Token Unlock Events to Watch Out for in July

Published

5 hours ago

June 30, 2024

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As July nears, the crypto market anticipates a significant wave of token unlocks, with projects set to release around $3 billion worth of assets.

Token unlocks involve gradually releasing coins to prevent early investors or team members from selling large amounts quickly. Market experts noted that this process can increase selling pressure on digital assets, which can affect the broader market.

Top Unlocks for July

CryptoRank, a prominent crypto research and analytics platform, has highlighted July’s top 10 token unlock events. These events will unlock over $3 billion in digital assets, including over $100 million in the first week of the month.

AltLayer, an Ethereum roll-up project deployer, will release around 684 million tokens worth $119 million on July 25. Token Unlocks data shows that these tokens represent 22% of the market cap. The assets would be distributed to its team, investors, advisers, protocol development, treasury ecosystem, and community.

Meanwhile, Layer-1 blockchain platform Aptos and Ethereum Layer-2 network Arbitrum will continue their monthly token releases. The two projects will cumulatively release $150 million worth of tokens for their team, advisors, and investors.

July token unlocks — Top 10 Token Unlocks in July. Source: Cryptorank

Worldcoin, the proof-of-personhood project, will start a major token unlock on July 24. This event will release 6.62 million WLD tokens, valued at approximately $18 million, daily over 730 days. The tokens are allocated to the community, the initial development team, and investors.

Other notable July unlocks include Uniswap (UNI), Ronin (RON), SUI, ImmutableX (IMX), SEI, Starknet (STRK), and Ethereum Name Service (ENS). Uniswap plans to release 8.33 million UNI tokens worth $77.88 million on July 16. Ronin will release 35.71 million RON tokens valued at $76.32 million starting July 27.

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