Ethereum (ETH) surged nearly 3% on Thursday as the launch of a spot ETH ETF and key on-chain indicators suggest an ETH bull run could be near.

Daily Market Drivers: Why Decreasing ETH Supply on Exchanges, ETH Staking, and ETH Spot ETF Launch Prepare Ethereum for a New High.

According to data from Glassnode, Ethereum supply on exchanges continues to decrease despite recent price increases.

As previously reported, this shows that most ETH long-term (LTH) holders have not yet started taking profits. LTHs may be expecting the price to move higher and reach new highs before they start taking profits, especially as the launch of spot ETH ETFs approaches.

Increased yields from ETH staking and restaking protocols may also be responsible for the decrease in exchange supply. Glassnode data also shows a steady increase in the amount of ETH staked, meaning that much of the reduced exchange supply may have flowed into staking protocols.

ETH exchange supply versus staking ETH

With the growth of EigenLayer, Kaiko, and Symbiotic along with the increase in the number of restaking protocols and restaking liquidity they support, ETH supply on exchanges may continue to decrease. Combined with the potential launch of ETH ETFs, Ethereum could be positioned for significant price growth in the future.

The Securities and Exchange Commission (SEC) approved Section 19b-4 spot ETH ETF applications on May 23 but has not yet approved their S-1 registration statements. Issuers refiled amended S-1s last week after the SEC issued “soft” comments.

Galaxy's recent research report on potential inflows into spot ETH ETFs is also in line with this prediction. The report says Ethereum ETFs could attract up to $5 billion in their first month of trading.

“We expect inflows to ETH ETFs to account for 20-50% of inflows to BTC ETFs in the first five months, with a target of 30%, which is about $1 billion/month,” the analyst said. said Galaxy's Charles Yu.

The report says Ethereum price will be more sensitive to inflows than Bitcoin due to the reduced supply of ETH locked in staking protocols, bridges, smart contracts, and exchange supply. However, Galaxy also emphasized that potential outflows from Grayscale's Ethereum Trust conversion and the absence of staking could impact inflows to the ETH ETF.

This follows an earlier prediction from Bitwise CIO Matt Hougan that ETH spot ETFs could attract $15 billion in net inflows by the end of 2025.

The SEC could give final approval to spot ETH ETFs on July 4, according to a Reuters report.

ETH Technical Analysis: Can Ethereum surpass the critical resistance level at $3,629?

Ethereum is trading around $3,450, up nearly 3% after the cryptocurrency market recovered slightly. This increase has caused ETH short liquidation orders to reach $18.31 million, while long orders only reached $4.10 million in the past 24 hours.

ETH open interest (OI) on the CME Exchange reached an all-time high this week. With ETH price also slightly up, CME's rising open interest suggests that US investors may be expecting a bull run. This also shows the potential for inflows into spot ETH ETFs when they launch, which could cause ETH prices to increase.

ETH/USDT 4-hour chart

ETH could see a bull run as the potential launch date of spot ETH ETFs approaches, but it is facing resistance at $3,629. Over the past three weeks, ETH investors have failed on three different occasions trying to sustain a rally above this level. A successful and sustained rally above the $3,629 price level could have ETH aiming to clear the next resistance at $3,829.

A drop below the $3,300 support could send ETH back down to gather liquidity around the May 20 fair value gap, which spanned from $3,110 to $3,457. The critical support level at $3,203 could help prevent further decline.


Source: https://tapchibitcoin.io/ba-yeu-to-chinh-co-the-day-eth-len-nhung-tam-cao-moi.html