Amid the market slowdown, crypto analysts believe Ethereum (ETH) might be ready to retest key resistance levels again. Meanwhile, investors are expectant about the second-largest cryptocurrency performance as the final approval of spot ETH ETFs (exchange-traded funds) approaches.
Is Ethereum ETFs Approval Already Priced In?
The upcoming approval of spot Ethereum ETFs has crypto investors speculating about the launch’s impact on ETH’s performance. Renowned investor Daan Crypto Trades believes the news about the S-1 form approval won’t affect Ethereum’s price.
Per the trader, the announcement will play out like the 19b-4 approval news in May. Nearly two months ago, the rumors about the ETH ETFs decision by the Securities and Exchange Commission (SEC) fueled Ethereum’s rally.
The ‘king of altcoins’ surged over 30% in anticipation, going from $3,000 to $3,900. However, the token’s price did not see any further impact after the official announcement.
To Daan, the SEC’s approval won’t be bullish or bearish as it is “99%+ priced in.” The analysts added that “the real test will be the actual flows once the ETFs are live.”
Moreover, the trader considers the market will see a lot of Grayscale Ethereum Trust (ETHE) outflows, but not “as bad as we saw with GBTC.” Regarding the demand for the Ethereum ETFs, the crypto investor affirmed that 20% of spot BTC ETF inflows are expected.
The expectations will be that it’s anywhere from 10-30% of what BTC got in terms of inflows. I think ~20% is a pretty safe estimate. Anything higher would obviously be a nice surprise. ETH doesn’t need as many flows as BTC does to make it move after all. The market cap is 1/3th and there’s a lot of supply locked up in staking/defi products etc. Pretty thin market compared to BTC.
ETH 3x Rally In The Next Year
Crypto analyst Jelle considers that ETH could soon be able to retest key resistance levels. The second-largest cryptocurrency is “reclaiming the 200-day EMA, with the ETFs approaching fast.”
Per the post, If ETH successfully holds this level, the cryptocurrency could test the $4,000 mark. The analyst expects Ethereum to outperform Bitcoin in the following weeks. To him, the flagship cryptocurrency will have a “boring next few weeks” moving sideways.
Jelle also affirmed that investors are not “ready for it to melt faces,” commenting on those who doubt ETH. “Every cycle, people give up on ETH, saying it’s ‘dead tech’ – only to be proven wrong again,” he said.
ETH’s price has increased by 5.4% in the last week, currently trading at $3,121. Despite registering a 13% decrease in the past month, some market watchers believe ETH’s current price is a good inversion. “Anything close to $3k or below is free 3x in the next 12 months,” said pseudonym crypto analyst Poseidon.
Featured Image from Unsplash.com, Chart from TradingView.com
Rubmar Garcia
Rubmar is a writer and translator who has been a crypto enthusiast for the past four years. Her goal as a writer is to create informative, complete, and easily understandable pieces accessible to those entering the crypto space. After learning about cryptocurrencies in 2019, Rubmar became curious about the world of possibilities the industry offered, quickly learning that financial freedom was at the palm of her hand with the developing technology.
From a young age, Rubmar was curious about how languages work, finding special interest in wordplay and the peculiarities of dialects. Her curiosity grew as she became an avid reader in her teenage years. She explored freedom and new words through her favorite books, which shaped her view of the world. Rubmar acquired the necessary skills for in-depth research and analytical thinking at university, where she studied Literature and Linguistics. Her studies have given her a sharp perspective on several topics and allowed her to turn every stone in her investigations.
In 2019, she first dipped her toes in the crypto industry when a friend introduced her to Bitcoin and cryptocurrencies, but it wasn’t until 2020 that she started to dive into the depth of the industry. As Rubmar began to understand the mechanics of the crypto sphere, she saw a new world yet to be explored.
At the beginning of her crypto voyage, she discovered a new system that allowed her to have control over her finances. As a young adult of the 21st century, Rubmar has faced the challenges of the traditional banking system and the restrictions of fiat money.
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In her free time, she usually finds joy in different art forms. As a child, she enlisted in every extra-curricular activity in her hometown, including music classes, dancing, jewelry making, and the local chorus. Despite her many attempts to learn different instruments, Rubmar only knows how to play the xylophone, which she played for 7 years in her school’s marching band.
She also has a passion for learning new languages and cultures, having set the goal to learn another six languages – currently attempting to learn Italian and Korean. Scrapbooking, paper crafting, and bookbinding are her biggest interests outside of work, constantly taking classes and attending workshops to learn new techniques. The rest of her free time is spent stressing over football matches and transfer market news or feeding cats –hers or stray.
In summary, Rubmar seeks to present entertaining and educational pieces to be enjoyed by everybody, aiming to report on the latest news and offer a unique perspective while adding a meme or a pun whenever possible.
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