4 reasons reveal why Ethereum is falling instead of rising! Spot ETFs are listed and traded, why hasn't it risen yet? ? ?
It should be a positive, but it has not driven Ethereum higher. In addition to the fact that the good news has been exhausted and it is sold, are there any other reasons?
1) The expected capital inflow of Ethereum spot ETF is low
According to market makers' forecasts, Ethereum spot ETF can attract a maximum of $4 billion in capital inflows, which is far lower than the $4.5 billion to $6.5 billion capital flow predicted by most analysts, and even less than the $17 billion in capital attracted by Bitcoin ETF when it was listed.
2) Ethereum spot ETF has no pledge service
Since the US SEC does not allow Ethereum ETF to provide pledge services, it has also caused Ethereum spot to lose its competitiveness, because investors who directly hold spot can earn income through pledge.
3) Low demand for Ethereum futures
According to information from blockchain data providers, the market demand for Ethereum futures is low, which is the opposite of the previous situation that Bitcoin spot ETF is about to be listed, so the performance of Ethereum spot ETF may be disappointing.
4) Ethereum implied volatility has risen sharply
Ethereum implied volatility rose sharply over the weekend, with contracts approaching expiration (July 26) jumping from 59% to 67%. This means that the market's confidence in Ethereum has weakened, and traders are willing to pay a higher premium to hedge their bets.
Therefore, there are many factors that affect the price of Ethereum. In the current environment, unfavorable factors such as the US election and Mentougou are still there, so in the short term, it is still a volatile pattern. However, I personally believe that Ethereum still has great potential, and the underlying logic has been recognized by traditional financial institutions. It is only a matter of time before it breaks through the previous high!
