Summary
- ethereum saw the launch of nine spot ETFs by major financial institutions, with the products surpassing $1 billion in trading volume on the first day.
- Despite initial price drops, analysts are predicting a potential eth rally backed by key metrics that indicate increased volatility and an uptrend ahead.
What's next for eth?
ethereum (eth) has been a hot trending topic in the cryptocurrency space over the past few days due to the official and highly anticipated launch of nine eth spot ETFs in the United States. They went live on July 23 and are issued by prominent financial institutions BlackRock, Fidelity, Franklin Templeton, VanEck, Grayscale, Invesco, 21Shares, and Bitwise.
The collective trading volume of the the aforementioned ETFs overcome $360 million 90 minutes after the launch, with the Grayscale ethereum Trust (ETHE) seeing the most action. Several hours later, that figure x.com/JSeyff/status/1815958023317205232″ target=”_blank”>exceeded the billion dollar milestone.
Despite solid numbers, eth price remains slightly flat in it Red on daily scale. It is worth mentioning that some Industry participants warned against this “sell the news” scenario. User x Byzantine General x.com/search?q=eth%20etf%20sell%20the%20news&src=typed_query” target=”_blank”>remembered That bitcoin price also plummeted after the launch of btc spot ETFs earlier this year before “entering a monster rally.”
“I expect something similar for eth. A false “sell the news” effect before a turbo-boost,” they suggested.
crypto Capo and Mikybull crypto also weighed in. The former highlighted that the total trading volume of eth ETFs is about 23% of what spot btc ETFs did on their first day. The analyst x.com/CryptoCapo_/status/1815997125760610418″ target=”_blank”>argument that the price of Ether is currently in consolidation mode, expecting a breakout to a new all-time high before the end of 2024.
Mikybull crypto too x.com/MikybullCrypto/status/1815728317989093690″ target=”_blank”>reclaimed that recently launched spot ETFs willpower will be the “main driver” of an upward trend in the coming months. They set $10,000 as a new target price.
What do the metrics suggest?
Important indicators related to the ethereum ecosystem point to a possible rally. indeed The relative strength index (RSI), which measures the speed and change of price movements, has been declining recently.
It ranges from 0 to 100, with a ratio above 70 indicating that a correction could be imminent. Currently, the RSI eth” target=”_blank”>it's found around 48, while in early July it fell to a near one-year low of 11.85.
ethereum Open Interest (the total number of outstanding derivative contracts, such as futures or options, that have not It has been solved) is the next metric, suggesting that further volatility could be on the way. It has been on the rise In recent weeks, currently eth/chart/derivatives/open-interest?exchange=all_exchange&symbol=all_symbol&window=DAY&sma=0&ema=0&priceScale=log&metricScale=linear&chartStyle=line” target=”_blank”>aiming at more than 11.6 billion dollars. Compared, The figure was less than $6 billion by early 2024.
While rising open interest does not necessarily mean good news, it is often a precursor to a violent price move in either direction. Combining it with a potential broader bullish trend in the cryptocurrency market could have a positive impact on eth’s valuation.
ethereum Price Predictions: New ATH in the Near Future or Deeper Correction? The post ethereum Price Predictions: New ATH in the Near Future or Deeper Correction? appeared first on CryptoPotato.
