Crypto researchers are eyeing a bullish future for Ether (ETH) following the Bitcoin halving, despite its recent 11.39% decline over the past month. Jupiter Zheng, a prominent crypto researcher, suggests that the outcome of the Ether exchange-traded fund (ETF) decision might not significantly sway open interest, as market anticipation remains subdued.
A Look Ahead: Ether's Potential Upswing
Analysts predict a significant price increase for Ether in the months following the Bitcoin halving, drawing on historical patterns for optimism. The previous halvings have been catalytic events, sparking notable price movements in the crypto market. This time around, the anticipation is no different, with expectations set high for Ether's performance.
ETF Denial: Not Necessarily a Downer
Contrary to what one might expect, a potential denial of the Ether ETF by regulatory bodies might not adversely affect its price. "The market has not yet priced in an Ether ETF approval, meaning a denial wouldn't be as bearish as some might think. Plus, Bitcoin ETFs still provide a gateway for traditional funds into the crypto world," explained Jupiter Zheng, Head of Research at Hashkey Capital, in an interview with Cointelegraph.
Zheng is particularly optimistic about the prospects of a spot Ether ETF approval that includes staking options, predicting such a move to be "really bullish." An approval could lead to a surge in short liquidations, further pushing up the price of Ether.
Recent Market Movements
The past week has seen a sharp decline in Ether's price, resulting in $39.13 million worth of long positions being liquidated in just 24 hours, according to CoinGlass data. Additionally, short positions amounting to $15.66 million faced liquidation within the same timeframe. With Ether's current price teetering around $3,293, a minor dip could trigger significant market movements.
Despite these fluctuations, Zheng believes the impact on ETH futures open interest will be minimal, as the market is not heavily leveraged on this outcome. Currently, the open interest in Ether futures stands at $12.89 billion, in contrast to Bitcoin's $31.744 billion.
Chart Patterns and Predictions
Traders have identified notable patterns on Ether's price chart leading up to the Bitcoin halving. Jelle, a well-known trader, pointed out a pattern reminiscent of the period before the last Bitcoin halving, hinting at a potential price surge for Ether. Following the last halving in May 2020, Ether experienced a 106% price increase in just three months.
Zheng remains confident in the Ether market, proclaiming, "The ETH season is yet to come," despite ongoing regulatory scrutiny over the Ethereum Foundation by the United States Securities and Exchange Commission. Recent investigations have sparked concerns over the classification of ETH as a security, yet the market's spirit remains undeterred, looking forward to what the future holds for Ether.
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