In this article. The launch of the Ethereum Spot ETF did not spark an explosive rally in the market, with first-day inflows totaling $107 million.
#BTC is currently trading below its key moving average, indicating short-term bearish momentum despite a long-term bullish outlook.
Analysts remain bullish and expect Ethereum to reach all-time highs if institutional investor interest continues. Last night, the long-awaited Ethereum Spot #ETF began trading. Contrary to expectations, the market was not thrilled; as QCP Capital noted, the launch did not bring the fireworks that some had hoped for.
On the contrary, #bitcoin attracted $655 million, most of which came from the $484 million outflow from ETHE.
#BTC volatility also declined in all structures of the period. Interestingly, the volatility premium of Ethereum relative to bitcoin volatility reversed. One- and two-week bitcoin options are now trading 1-3 percentage points higher than ethereum.
Despite this weak start, QCPs remain bullish on Ethereum. They point to bitcoin's past performance after the ETF launch as a precedent.
Bitcoin reached an all-time high two months after the ETF launch, and they believe that Ethereum could follow a similar pattern.
Since volatility is still at a reasonable level, QCP believes that using an accumulation strategy is a smart move to take advantage of the gradual uptrend.
Under this strategy, spot ETH is bought weekly at a 10.1% discount as long as the spot price remains below US$BTC The Ethereum is currently trading at around US$3,329, down 1.42% from the previous level. This decline has brought the price closer to key support levels, particularly at USD 3,300.
The chart shows that Ethereum is trading below key moving averages: the 50-day moving average is at USD 3,466 and the 200-day moving average is at USD 3,454.
The fact that the market is trading below these averages indicates that the short-term trend is bearish, although the long-term sentiment remains bullish.
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