Ether Predicted to Surge Despite Recent Dip, Amidst Speculations of Spot Ethereum ETF Approval
Summary:
Despite Ether (ETH) experiencing an 11.39% dip in the past month, crypto experts predict a potential hike in its price, based on historical data post Bitcoin halving. The approval of a spot Ethereum ETF with staking could further boost prices, as per Hashkey Capital's head of Research. With Ether’s value at $3,293, a 1.5% drop could lead to significant liquidations. Despite the recent investigation into Ethereum Foundation by the U.S. Securities and Exchange Commission, optimism remains for the upcoming "ETH season".
Speculations of a substantial price hike for Ether (ETH) have been strengthened by seasoned crypto experts, despite a 11.39% dip in the past month. This prediction banks on historical statistics post the Bitcoin halving. There is also the belief that the odds of an ETF rejection will not cause a decline in prices. Jupiter Zheng, who leads the research team at Hashkey Capital, explained to Cointelegraph that the crypto market isn't contingent on the ETF approval and therefore, a dismissal would not affect it negatively. Existing BTC ETFs are still valid routes for traditional funds.
A more optimistic scenario involves the approval of spot Ethereum ETF with staking, which Zheng considers to be “highly bullish”. Such an approval could instigate a flurry of short liquidations, encouraging a potential price spike. CoinGlass data reports that Ethereum's price downturn this week has triggered the liquidation of long positions worth $39.13 million over the past day. Over the same time period, a total of $15.66 million worth short positions were liquidated.
Ether’s current market price at $3,293 implies a 1.5% fall to $3,250 would result in $70.96 million worth liquidations. However, Zheng's anticipation of this not significantly influencing ETH futures open interest holds, as the market is currently not heavily dependent on it. Ethereum futures open interest (OI) currently stands at $12.89 billion, while Bitcoin’s is about two and half times more at $31.744 billion.
Renowned trader Jelle has noticed a trend in Ether’s price chart resembling the trend prior to the Bitcoin halving on April 20. Jelle observed that Ethereum's price hike often follows the Bitcoin halving. This was evident in the Bitcoin halving on May 11, 2020, when Ethereum was priced approximately $210 but surged to $433 within three months, noting a 106% increase according to CoinMarketCap data.
An evident ascending triangle pattern on Ethereum’s price chart, as identified by Jelle, could indicate a potential surge. Meanwhile, Zheng predicts the impending arrival of “ETH season”. However, recent developments of the U.S. Securities and Exchange Commission launching an investigation into the Ethereum Foundation have created a dampened outlook for the approval of spot Ethereum ETFs. Earlier, on March 20, Cointelegraph reported the issuance of subpoenas by the SEC to several organisations that have collaborated with the Ethereum Foundation, inciting speculations of ETH being categorised as a security since 2022.
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Published At
4/5/2024 9:46:55 AM
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