Ethereum (ETH) is currently experiencing a surge in price, with experts predicting that ETH ETFs could help push the cryptocurrency to a new all-time high above $5,000. Bitwise CIO Matt Hougan believes that inflows across Ethereum ETFs will significantly impact ETH’s price, with predictions of $15 billion in net inflows within the first 18 months of launch. Citi Bank also predicts that ETH ETFs could attract around $5 billion in net inflows within six months of launch, further supporting the idea of a new all-time high for Ethereum.
Hougan pointed out that Ethereum’s deflationary status, combined with increased staking and usage in DeFi protocols, has already removed over 40% of ETH off the market. This, along with lower economic costs of Ethereum’s consensus mechanism compared to Bitcoin miners, reduces the selling pressure on ETH. Hougan believes that the combination of these factors and his earlier predictions of ETH ETFs gaining significant traction sets the stage for ETH to reach a new all-time high in the near future.
The SEC is expected to greenlight ETH ETFs for trading next week, based on updates from Bloomberg analyst Eric Balchunas and Reuters. This news has led to increased optimism in the market, with traders and analysts like Peter Brandt predicting that ETH could rally as much as 60% to reach $5,627. Brandt suggests that ETH could find support around $2,800 before making a move to the upside, potentially setting a new all-time high for the cryptocurrency.
Ethereum is currently trading around $3,460, up over 2% on the day, with options open interest rising by 13% in the past 24 hours to $6.66 billion. This increase in open interest, combined with the price growth of ETH, indicates a potential for more upside in the market. Traders and investors are closely monitoring ETH’s price movements, especially as the SEC is expected to approve ETH ETFs for trading next week.
In the short term, if ETH manages to rise above $3,502, over $34.8 million worth of short positions are expected to be liquidated from the market. This could potentially trigger a bullish momentum for ETH, especially if it can find support at key levels and make significant moves to the upside. With experts predicting a bright future for Ethereum and the potential impact of ETH ETFs, many are optimistic about the cryptocurrency’s prospects in the coming months.
