As a seasoned crypto investor with several years of experience under my belt, I’ve witnessed the ebb and flow of various digital assets, including Ethereum. And let me tell you, the current Ethereum scene is nothing short of intriguing.
Just as with Bitcoin and leading altcoins such as Solana, Ethereum currently maintains a stable position. At present, its value hovers above the nearby support level of $3,300, aiming for an uptrend towards $3,700.
Speculators Flowing To ETH As Bulls Set Sight On $3,700
From my research perspective, the recent surge in Ethereum’s price can be attributed to several market factors, with the imminent launch of spot Ethereum Exchange-Traded Funds (ETFs) being the primary driver. The daily chart reveals a noticeable increase in demand since May 2021, following news that the SEC was expediting the review process for the necessary forms (19b-4).
Despite a stable and upward trending price, investors known as speculators are increasingly present in the market. According to CryptoQuant’s analysis, the estimated leverage ratio has seen an increase over the last few trading sessions.
As the value of Ethereum (ETH) reads higher, the Ethereum market attracts an increasing number of traders who are primarily focused on capitalizing on price fluctuations, rather than appreciating Ethereum for its underlying digital asset qualities.
Based on CryptoQuant’s data, the estimated leverage ratio was 0.347 on July 16, but it climbed up to 0.354 the following day. This rise indicates that traders have been borrowing more funds from perpetual trading platforms such as Binance and OKX in anticipation of potential profits if Ethereum’s price surpasses $3,700.
When prices surge, the calculated debt-to-equity ratio is expected to increase further beyond the local peak of 0.358, reached on July 14. The maximum recorded leverage ratio stands at 0.392 from early July 2024.
Eyes On Spot Ethereum ETFs: Will It Be A Success?
Confident Ethereum traders believe prices will surge past previous records with the imminent arrival of spot Ethereum ETFs for retail. Reports indicate these exchange-traded funds are set to debut early next week, granting larger investors an entry point.
The Securities and Exchange Commission (SEC) in the United States has granted approval for three entities to commence the process of launching Ethereum exchange-traded funds (ETFs). Meanwhile, it is anticipated that all other Ethereum ETF applicants whose forms have been approved will be allowed to debut concurrently.
It’s likely that Ethereum spot ETFs will replicate the achievements of their Bitcoin counterparts, given the growing confidence in this area. As reported by SosoValue, the total managed assets for all Bitcoin spot ETF issuers amounted to approximately $53 billion as of July 18.
Despite the high anticipation and potential positive effect on prices, the new product is expected to face a distinct level of demand compared to when spot Bitcoin ETFs were initially introduced.
Experts attribute this to Ethereum’s smaller market value and the US Securities and Exchange Commission’s refusal to permit spot Ethereum exchange-traded fund (ETF) issuers to stake ETH. Staking enables issuers to earn rewards on behalf of their investors.
Read More
- BTC PREDICTION. BTC cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- ETHW PREDICTION. ETHW cryptocurrency
- Ethereum (ETH) Crashes Dramatically, What’s Next? Solana (SOL) Can Still Reach $200, XRP Struggling Before $0.63 Test
- ALPINE PREDICTION. ALPINE cryptocurrency
- Survival Horror Games With an Unkillable Enemy
- Marvel Rivals Players Aren’t Happy With The Gold Rank Competitive Reward
- Scream 7 Needs To Unite The Fanbase
- Pokemon Fan Shares Adorable Twin Umbreon Rug
2024-07-19 09:42