Ethereum (ETH) jumped nearly 2% today following a prediction from Bitwise chief investment officer (CIO) Matt Hougan that ETH ETFs could help push ETH to new all-time highs above 5,000 USD. Other predictions from Citi Bank and legendary trader Peter Brandt are also in line with Hougan's views.

Ethereum ETFs Set for New All-Time Highs

Bitwise CIO Matt Hougan predicts that inflows into Ethereum ETFs will push ETH prices to new all-time highs above $5,000.

“By the end of the year, I am confident that new highs will be set. And if capital flows are much stronger than many market commentators expect, prices could be much higher,” Hougan said in a recent note to investors.

Hougan believes that ETFs will have a greater impact on the price of ETH than Bitcoin ETFs have had on BTC due to the new demand that ETFs bring to commodities without changing fundamentals. their version. BTC is up 110% since October, when Bloomberg announced the SEC would likely approve Bitcoin ETFs.

Bitcoin returns since January 2023

He compared Bitcoin's previous inflation rate of 1.7% to Ethereum, which has fluctuated from negative to 0% over the past year. ETH has maintained such a deflationary state since the implementation of Ethereum Improvement Proposal 1559 (EIP-1559), reducing the amount of ETH in circulation as each transaction on the Mainnet takes place.

“Significant new demand meets 0% new supply? I like that math. And if activity on Ethereum increases, so does the amount of ETH consumed. That is another lever of organic demand that is working in favor of investors,” Hougan said.

Hougan also highlighted how Ethereum's consensus mechanism reduces economic costs, reducing selling pressure on ETH, unlike Bitcoin miners, who have to sell a portion of their assets to cover costs.

Finally, he mentioned that increased staking and use of ETH in DeFi protocols has removed more than 40% of ETH from the market.

Hougan believes that these factors, combined with his previous predictions of ETFs raking in $15 billion in the first 18 months of launch, will prepare Ethereum to reach a new all-time high. .

Meanwhile, banking giant Citi predicted in a research report last week that Ethereum ETFs could see inflows of up to 30%-35% compared to Bitcoin ETFs. That would equate to about $4.7 billion to $5.4 billion in net inflows, Citi analysts noted.

The US Securities and Exchange Commission (SEC) is likely to clear ETH ETFs for trading on July 23. This follows updates from Bloomberg analyst Eric Balchunas and Reuters, claims that sources said the regulator has asked issuers to submit final S-1 drafts this week in preparation for next week's launch.

Technical Analysis: Could ETH Rise 60% to $5,627?

ETH is trading around $3,480, up nearly 2% on the day. Over the past 24 hours, ETH has seen over $45 million liquidated, with Short positions leading at $25.36 million and Long positions at $19.92 million liquidated.

ETH options open interest has increased 13% in the past 24 hours to $6.66 billion. Open interest is the total number of outstanding contracts in the derivatives market. The increase in open interest along with the growth in price indicates further upside potential in the market. As a result, options traders may be expecting higher ETH prices and are reacting accordingly.

This is in line with a recent prediction from famous trader and analyst Peter Brandt.

Brandt predicts that ETH could reach new highs soon after finding support around $2,800, the lower limit of a rectangle that has lasted more than four months, “which is a retest of the trumpet bottom of February." If ETH can complete a move to the top of the rectangle at $4,093, Brandt thinks it could set a new high at $5,627.

ETH/USDT weekly chart

After ETH rose above $3,502, more than $34.8 million in Short positions were liquidated from the market.

Source: https://tapchibitcoin.io/eth-chuan-bi-dat-muc-cao-nhat-moi-thoi-dai-moi.html