How To Trade The Ethereum Rally: 10x Research
The team around lead analyst Markus Thielen points out several key observations.
Bitcoin has seen a modest 3% increase in futures open interest, while Ethereum’s surged by 45%, indicating a strong preference for ETH over BTC as the catalyst of choice. “The trade might be ETH > BTC, as that is the catalyst,” 10x Research notes.
Institutional Moves:
The approval of spot Ethereum ETFs can lead to significant price movements. Even the anticipation has already caused Ethereum futures open interest to increase by $4 billion. As ETF issuers prepare for sufficient capital on launch day, the rally may continue, driving ETH prices higher.
Sectorwide Impact:
The surge in DeFi's total value locked, increasing by $17 billion in a week to $107 billion, is also notable. Lido
LDO/USD-5.00%
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and Ethena
ENA/USD
have seen marked increases in their TVL, implying broader bullish sentiment that extends beyond just Ethereum. Lido (LDO) rallied from $1.50 to $2.60 after the announcement of unstaked ETH ETF approval, with more potential upside left.
Why It Matters: 10x Research’s central thesis is that traders should adopt bullish positions leading up to major events, as historical patterns suggest substantial price appreciations during these periods. “For traders like us, it's essential to quickly throw out the old playbook and adjust to the new reality,” the research firm said.
