Ethereum Bull Run on Horizon? Top Three Indicators

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As an experienced analyst, I believe Ethereum (ETH) is showing strong signs of a potential bull run based on recent market developments. The SEC’s approval of the first ETH ETFs last week has significantly boosted investor confidence and resulted in substantial price increases for ETH.

In the cryptocurrency world, Ethereum (ETH) is taking center stage as the market prepares for a new phase, with indicators suggesting that a robust uptrend could be on the horizon.

In an unexpected development, the SEC granted approval for the first Ethereum-based Exchange Traded Funds (ETFs) last week, leading to a substantial 27% surge in Ethereum’s value over the past week. Currently, Ethereum is experiencing a 2.34% rise in price within the past 24 hours, reaching $3,941 and setting new intraday highs at $3,950.

As a data analyst at Kaiko, I’d rephrase it this way: In our latest analysis, my team and I at Kaiko explore the possibility that Ethereum is gearing up for a bull market based on current market trends.

As an analyst, I’ve been closely monitoring the crypto market and was taken aback when the SEC approved the first spot ETH ETFS last week. This development has led to a remarkable surge of over 25% in the value of Ethereum. So, is Ethereum gearing up for a bull run? The recent price action certainly suggests that possibility. For more insights, I invite you to explore our latest Data Debrief.— Kaiko (@KaikoData) May 27, 2024

One way to rephrase this in clear and conversational language is: “The derivatives market offers valuable clues about Ethereum traders’ attitudes, as signaled by its open interest levels and funding rates.”

After the surprising announcement by the U.S. Securities and Exchange Commission that they would allow the creation of spot Ethereum ETFs, public opinion towards Ethereum underwent a significant change.

In just a few days, the attitude towards Ethereum (ETH) noticeably improved, as evidenced by a significant increase in Ethereum perpetual futures funding rates. These rates had reached their lowest point in more than a year, but they quickly climbed back up to levels not seen since several months prior.

The total value of open bets in the market hit a record $11 billion, suggesting significant investment into the sector. Additionally, the ratio comparing the value of Ethereum to Bitcoin evolved from 0.044 to 0.055, though it still hasn’t surpassed its February peak.

The ETH Cumulative Volume Delta (CVD) serves as another sign that the recent increase in Ethereum has been driven by strong demand across both U.S. and international markets since May 21st. Previously, offshore exchanges had shown net selling, implying a more pessimistic global outlook.

As a crypto investor, I closely monitor market depth as one of the key indicators of a healthy market. Market depth refers to the overall liquidity or ability of the market to absorb large orders without significantly moving the price of an asset. Based on data from Kaiko, Ethereum’s (ETH) current market depth on centralized exchanges (CEXes) stands at around $226 million. This figure is a striking 42% below its pre-FTX average levels. Moreover, only 40% of this liquidity is concentrated on U.S. exchanges, compared to approximately 50% in early 2023.

Kaiko pointed out that the approval of Ethereum (ETH) on the regulatory front brings substantial consequences for the cryptocurrency as a valuable asset. This development helps alleviate some of the regulatory uncertainties that negatively impacted ETH’s growth over the previous year. Even if inflows underperform initially, this news is still advantageous for Ethereum.

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2024-05-27 18:51