TL;DR
Ethereum saw the launch of nine spot ETFs by major financial institutions, with the products surpassing $1 billion in trading volume on day one.
Despite initial price dips, analysts predict a potential rally for ETH supported by key metrics indicating increased volatility and a bullish trend ahead.
What’s Next for ETH?
Ethereum (ETH) has been a top-trending topic in the crypto space in the past few days due to the official and long-anticipated introduction of nine spot ETH ETFs in the United States. They went live on July 23 as the issuers are the prominent financial institutions BlackRock, Fidelity, Franklin Templeton, VanEck, Grayscale, Invesco, 21Shares, and Bitwise.
The collective trading volume of the aforementioned ETFs surpassed $360 million 90 minutes after launch, with the Grayscale Ethereum Trust (ETHE) witnessing the most action. Several hours later, that figure exceeded the $1 billion milestone.
Despite the solid numbers, ETH’s price remains slightly in the red on a daily scale. It is worth mentioning that some industry participants warned about such a “sell the news” scenario. The X user Byzantine General reminded that bitcoin’s price also plummeted after the launch of spot BTC ETFs earlier this year before “going on a monster rally.”
“I expect something similar for ETH. A faux “sell the news” dump before turbo pump,” they suggested.
Il Capo of Crypto and Mikybull Crypto chipped in, too. The former outlined that the total trading volume of the ETH ETFs is approximately 23% of what the spot BTC ETFs did on their first day. The analyst argued that Ether’s price is currently in a consolidation mode, expecting a breakout to a new all-time high before the end of 2024.
Mikybull Crypto also claimed that the recently launched spot ETFs will be “the primary driver” for a bull run in the following months. They set $10,000 as the new price target.
What are Metrics Suggesting?
Important indicators related to Ethereum’s ecosystem signal that a rally could indeed be in the cards. The Relative Strength Index (RSI), which gauges the speed and change of price movements, has been decreasing recently.
It varies from 0 to 100 as a ratio above 70 hints that a correction might be imminent. Currently, the RSI stands at around 48, while at the start of July, it dropped to a nearly one-year low of 11.85.
Ethereum’s open interest (the total number of outstanding derivative contracts, such as futures or options, that have not been settled) is the next metric, suggesting that enhanced volatility could be incoming. It has been on the rise in the past few weeks, currently pointing at over $11.6 billion. In comparison, the figure stood at less than $6 billion at the start of 2024.
While the increase in open interest doesn’t necessarily spell good news, it is often a precursor of a violent price move in any direction. Its combination with a potential broader cryptocurrency market bull run could positively impact ETH’s valuation.
The post Ethereum Price Predictions: New ATH in the Near Future or Deeper Correction? appeared first on CryptoPotato.
