Much like bitcoin and major altcoins including Solana, ethereum remains stable. At the time of writing, it is trading above local support at $3,300 and floating higher, targeting $3,700.
The surge is due to multiple market-related factors, primarily the planned launch of a spot ethereum ETF in the coming days. As seen on the daily chart, the news that the U.S. Securities and Exchange Commission (SEC) accelerated the approval of Forms 19b-4 triggered a wave of demand starting on May 20.
However, speculators are invading the scene even as prices remain stable and trending upwards. Data from CryptoQuant shows that the estimated leverage ratio has increased over the past few trading days.
With this reading on the rise, the eth scene is seeing more leveraged traders interested in profiting from price volatility rather than benefiting from what eth as a digital asset presents.
According eth/chart/market-indicator/estimated-leverage-ratio?exchange=all_exchange&window=DAY&sma=0&ema=0&priceScale=log&metricScale=linear&chartStyle=line” target=”_blank” rel=”noopener nofollow”>CryptoquantityThe estimated leverage ratio stood at 0.347 on July 16 before rising to 0.354 on July 17. The expansion suggests that traders are increasingly borrowing funds on perpetual trading platforms like Binance and OKX, hoping to make money if eth bulls push prices above $3,700.
As prices rise, the estimated leverage ratio is likely to rise further. The local high is at 0.358, recorded on July 14. The historical leverage ratio stood at 0.392, recorded in early July 2024.
ethereum ETFs in the spotlight: will they be a success?
ethereum traders are confident that prices will rise, and even surpass all-time highs, once the eth spot ETF is launched. The latest reports show that the derivative product will be launched early next week, allowing institutional investors to gain exposure.
x/xqZDua9R/” rel=”nofollow noopener” target=”_blank”>x/xqZDua9R/” alt=”ethereum price shows an upward trend on the daily chart | Source: ETHUSDT on Binance, TradingView” width=”1233″ height=”592″/>ethereum price shows an upward trend on the daily chart | Source: x/xqZDua9R/” target=”_blank” rel=”noopener nofollow”>ETHUSDT on Binance, TradingView
The US SEC has given three issuers the green light to launch their own ETFs. However, all ethereum spot ETF applicants whose Form 19b-4s have been approved are expected to be able to launch their own ETFs simultaneously.
There is a lot of confidence that ethereum spot ETFs will follow the same path as their bitcoin spot ETFs. According to btc-spot” target=”_blank” rel=”noopener nofollow”>Bland ValueAll bitcoin spot ETF issuers manage over $53 billion worth of btc as of July 18.
Still, while highly anticipated and likely to have a positive impact on prices, the product will experience a different level of demand than it did when spot bitcoin ETFs were launched.
Analysts attribute this to ethereum’s lower market cap and the US SEC’s decision not to allow spot ETF issuers to stake eth. By staking, issuers would receive rewards on behalf of their clients.
