As an experienced financial analyst, I have closely followed the Ethereum market and its developments for quite some time. Based on the available data and trends, I am bullish on Ethereum’s price outlook in the coming weeks.
In the past month, ending in May, Ethereum (ETH) experienced a robust 27% price increase. A significant portion of this growth, approximately 27%, occurred within the last ten days following the approval of the spot Ethereum Exchange-Traded Fund (ETF). Currently, Ethereum hovers around the $3,800 mark. However, on-chain indicators hint at a potential substantial price surge in the near future.
Ethereum Whale and Institutional Interest Growing
Based on information from CryptoQuant, I’ve discovered that over 800,000 Ethereum tokens have transferred off exchanges within the last ten days following the approval of the spot Etherean ETF on May 23rd. According to CryptoQuant’s data, it appears that either large investors or institutions have been readying themselves for the ETF to become available for trading.
As an analyst, I’d interpret this situation as follows: This specific group of Ethereum investors might be responsible for transferring their ETH from exchanges to self-custody. The reduction in exchange-held ETH represents a bullish sign since fewer coins are accessible for selling. Additionally, the proportion of Ethereum supply residing on exchanges has reached a record low of 10.6%.
Since May 30th, Ethereum’s beacon-chain data reveals an uptick in staking activity. After a three-day span of withdrawals, numerous investors began staking their coins. Consequently, the total amount of Ethereum staked hit a weekly low of 32,193,980 ETH during this time.
Over the last 3 days, there has been an addition of 175,358 ETH in deposits on the beacon chain, equating to around $661 million at current market prices.
ETH Price To New All-Time High
As an analyst, I’ve observed that Ethereum (ETH) has maintained a firm stance at the support level of $3,750 following last week’s price drop. However, it encounters resistance around $3,830, which may hinder its progression towards higher valuations. If ETH manages to surmount this barrier, it could potentially propel further upward and challenge new peak prices above the $4,000 mark.
As a researcher, I’ve been following the developments in the world of cryptocurrency ETFs closely. Last week, Eric Balchunas, Bloomberg’s ETF analyst, expressed optimism about the potential approval of a spot Ethereum ETF by the end of June. Additionally, some market analysts posit that the price of Ethereum could surge past its all-time high of $4870 once trading begins for this ETF, given the demand pressure observed post-Bitcoin ETF launch. However, it’s important to note that some analysts predict only a 20% inflow of assets into Ethereum ETFs compared to their spot Bitcoin counterparts.
From a different perspective, potential investors might harbor some apprehensions regarding Grayscale’s Ethereum Trust (ETHE), given its substantial assets under management, which exceed $11 billion. If ETHE were to transform into a spot Ethereum exchange-traded fund (ETF), it could potentially experience outflows akin to those seen in Grayscale Bitcoin Trust (GBTC).
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2024-06-03 12:23