Analysts: Ethereum Is Set To Soar to New Highs
25 Jul, 2024 ● Crypto News
Despite the price of Ethereum remaining largely unchanged after the debut of spot Ether exchange-traded funds (ETFs), it could still reach unprecedented highs in 2024, according to a crypto market analyst.
“People should expect the unexpected, if the Ethereum community is looking for another reason to put it back in the spotlight, it has all the elements to rally like it has never seen before,” Swyftx lead market analyst Pav Hundal told Cointelegraph.
“Everyone is looking for any good news moment,” he added.
He highlighted the substantial amount of Ether currently being staked — which cannot be sold and thus contributes to its tightening supply — along with the recent launch of ETFs and the positive sentiment in the options market as key factors.
“It is still more bullish than bearish. The put-call ratio, which is looking at speculators betting for upside, is 0.27, which is very, very bullish,” he pointed out.
While Hundal was hesitant to provide an exact price prediction, he believes the “nearer-term goal” is for Ether to reach its November 2021 all-time high of $4,890.
However, he anticipates that the price “might be choppy” over the next 30 days.
At the time of publication, Ether is trading at $3,450, down 1.27% over the past seven days, according to CoinMarketCap data.
The trading debut of spot Ether ETFs on Tuesday, July 23, saw $106.6 million in net inflows, although the price of Ether barely moved, dropping slightly by 0.42% in the last 24 hours.
“No fireworks for the price of Ether, although the first Ether ETFs got off to a good start today,” markets commentator Holger Zschaepitz wrote in an X post.
Investors appear to have viewed the launch of spot Ether ETFs as an opportune moment to acquire Ether.
On July 22, a day before the ETFs started trading, permanent holder addresses accumulated a record 714,000 ETH valued at $2.4 billion.
Meanwhile, Hundal suggests traders might as well “ignore Ethereum’s previous prices” before the Merge, as the event enhanced Ether's supply and demand mechanics.
“Ever since deflationary mechanics was introduced, more deflationary elements on the product, a self-governing proof-of-stake, now when the market is busy, less Ethereum is being created,” he explained.
Sources:
https://cointelegraph.com/news/ether-crypto-traders-price-expectations-spot-eth-etf
