Market
What To Expect Once Approved?
A number of exchange-traded funds (ETFs) that will track the spot price of Ethereum (ETH), which were previously greenlit in May, are expected to become tradeable in the first week of July. In a recent post on X, senior ETF analyst Eric Balchunas noted that spot Ethereum ETFs might go live as soon as July 2. In another report by Reuters, the US Securities and Exchange Commission (SEC) might give its approval by July 4.
As the market awaits the launch of these new funds, there is an expectation that the leading altcoin would react the same way Bitcoin (BTC) did when spot Bitcoin ETFs launched at the beginning of the year.
Ethereum To Touch New Highs: What the Analysts Are Saying
Like Bitcoin in January, when spot Ethereum ETFs launch, there will be substantial capital inflows into the coin.
In a recent analysis, financial services provider Citi found that net inflows into spot Bitcoin ETFs surpassed $13 billion between January 4, when they were launched, and May 20.
These inflows caused BTC’s price to skyrocket, climbing to an all-time high of $73,750 by March 14. According to Citi, the leading crypto asset saw a 6% value rise per $1 billion inflow.
The bank projects that if investors apply similar market-cap-adjusted flows to Ethereum, inflows could range between $3.8 billion and $4.5 billion following the launch of the ETFs. This can cause the ETH’s price to rise by 23-28%.
At its current price of $3,450, a 28% spike means that ETH will trade at $4,417 by November. Interestingly, this will still be less than its all-time high of $4,891, recorded in November 2021.
Others believe that the launch of spot Ethereum ETFs will push the coin’s price to $10,000 by the end of the year. Andrey Stoychev, the head of prime brokerage at Nexo, stated this in a recent interview. According to him:
“ETH ETFs in the USA and similar products in Asia could be the driver that helps the asset reach $10,000 by end-2024, catching up with Bitcoin’s performance post-ETF.”
Staking Rewards Are Not “Safe”
There is an ongoing debate regarding whether the launch of spot Ethereum ETFs would impact the network’s staking activity. According to Matthew Sigel, the head of Digital Assets at VanEck, staking yields would soar once these funds go live and ETH moves from staking protocols into ETFs.
However, this may result in broader security problems for Ethereum. Security on the Layer-1 (L1) is dependent on validators who stake their coins. Once they start withdrawing their coins to put into ETFs, there would be fewer validators on Ethereum, making it prone to attacks.
As of this writing, there are 1.02 million validators on the Ethereum network, with an effective balance of 32.95 million ETH.
However, others believe that ETFs would not bring gains that would prompt ETH stakers to unstake their coins. In a recent report, CCData Research said:
“Hypothetically, if you had opened a 1000 ETH position on January 1st, 2023, with an ETF provider, instead of holding native Ether, which accrues staking rewards, you would have missed out on gains of over $200,000.”
As of this writing, investors have staked 27.68% of ETH’s total circulating supply of 120.18 million ETH.
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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Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.
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Ethereum price failed to climb above the $3,520 zone and corrected gains. ETH is now showing bearish signs below the $3,400 support zone.
- Ethereum started a downside correction after it failed to surpass the $3,520 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 $3,410 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is now at risk of more downsides below the $3,350 support zone.
Ethereum Price Dips Again
Ethereum price failed to continue higher above the $3,520 and $3,550 resistance levels. ETH formed a top near $3,520 and started a fresh decline like Bitcoin. There was a move below the $3,450 and $3,420 support levels.
The bears pushed the price below the 50% Fib retracement level of the upward wave from the $3,351 swing low to the $3,516 high. It seems like the price trimmed most gains and might continue to move down below the $3,350 support zone.
Ethereum is trading below $3,400 and the 100-hourly Simple Moving Average. It is also below the 76.4% Fib retracement level of the upward wave from the $3,351 swing low to the $3,516 high.
If there is a recovery wave, the price might face resistance near the $3,400 level. There is also a key bearish trend line forming with resistance near $3,410 on the hourly chart of ETH/USD. The first major resistance is near the $3,435 level.
The next major hurdle is near the $3,465 level. A close above the $3,465 level might send Ether toward the $3,520 resistance. The next key resistance is near $3,550. An upside break above the $3,550 resistance might send the price higher. Any more gains could send Ether toward the $3,650 resistance zone.
More Losses In ETH?
If Ethereum fails to clear the $3,410 resistance, it could continue to move down. Initial support on the downside is near $3,365. The first major support sits near the $3,350 zone.
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 gaining 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 – $3,435
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