ethereum remains lower as of writing, sinking about 18% from March 2024 highs. Although the bears appear to be in control on spot rates, keeping the second most valuable coin below $3,700, the Confidence is high among analysts.
eth futures open interest rises on CME
Carrying x, one of them. x.com/Ashcryptoreal/status/1804937350625345933″ target=”_blank”>noted that there are strong signs that institutions are positioning themselves to drive prices up. Citing the growing open interest in ethereum futures on the CME exchange, the analyst said that it is very likely that the “big money” is accumulating eth, taking advantage of the recent correction.
<img class="size-full wp-image-626153" src="https://technicalterrence.com/wp-content/uploads/2024/06/Is-Ethereum-ready-for-5000-ETH-Open-Interest-Expands-on.jpeg" alt="eth CME Futures Open Interest | Source: @Ashcryptoreal via x” srcset=”https://technicalterrence.com/wp-content/uploads/2024/06/Is-Ethereum-ready-for-5000-ETH-Open-Interest-Expands-on.jpeg?w=626 626w, https://technicalterrence.com/wp-content/uploads/2024/06/Is-Ethereum-ready-for-5000-ETH-Open-Interest-Expands-on.jpeg?w=460 460w” />
To reaffirm this outlook, the analyst said that the trend observed in the open interest of ethereum CME futures contracts is a reliable telltale sign.
Notably, this trend reflects what happened to bitcoin futures before the launch of spot bitcoin exchange-traded funds (ETFs). For this reason, the analyst is convinced that a similar pattern is emerging for ethereum.
Currently, ethereum is recording lower and discouraging lows. Sellers have been resilient, deflating any momentum build-up and putting limits on the bulls.
So far, it is emerging that $3,700 is a resistance level that traders should monitor closely. The bulls did not launch a counterattack once it was broken on June 7, and the bearish breakout was confirmed four days later on June 11.
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Despite current market conditions, the launch of ethereum spot ETFs could still push prices to new heights. The analyst predicts a possible expansion to $5,000, confirming the trend of the first quarter of 2024 and the break above the current flag.
Still, whether the bulls will be in control depends on how the price action plays out. Technically, open interest shows the cumulative sum of long open or leveraged positions. If buyers push prices higher, eth should expand in the coming days, even surpassing $3,700 this week.
Spot ethereum ETF Bullishness: Will They Be a Hit?
Beyond this, the recent flurry of activity around ethereum ETF spot applications reinforces this optimism. On June 21, seven applicants, whose Form 19b-4s were recently approved, filed amended S-1 registration statements with the U.S. Securities and Exchange Commission (SEC). Analysts now believe that the regulator could approve the marketing of these products as early as July 2024.
While bullish on ethereum, some analysts are not convinced it will enjoy similar success to that seen when bitcoin spot ETFs began trading. Bloomberg Senior ETF Analyst Eric Balchunas x.com/EricBalchunas/status/1795777989369561135″ target=”_blank”>foretold that ethereum spot ETF would be successful if it captures just 20% of all capital inflows destined for its bitcoin counterpart.
