In early 2023, Ethereum (ETH) experienced a sharp decline, but as 2024 began the tides started to turn. The price surged by approximately 50% from 1st and surpassed $4,000 by March. However, a recent 11% drop in the last month has raised concerns in the market.
Highlights
– Analyst’s Optimistic View of Ethereum
– Factors Behind Ethereum Potential Rise
– Current Price of Ethereum
Analyst’s Optimistic View of EthereumDespite recent price drop for Ethereum, renowned crypto analyst degentrading expressed an optimistic outlook, that Ethereum would reach $6,000 by September 2024. For up-to financial and business news visit COINTURK FINANCE.
The analyst’s prediction was in response to a post by Andrew Kang, founder of Mechanism Capital and known for cautious approach to the impending introduction of Ethereum spot exchange-traded funds (ETFs) the US market.
Factors Behind Ethereum’s Potential Rise
Degentrading’s bullish stance ethereum is grounded in several key factors. Notable among these is the $5 billion in CME open interest following low levels seen prior to ETF news.
This potential easing in trading could pave the way for significant capital inflows into ethereum’s marketAnother compelling factor is the comparison of liquidity between Bitcoin and ethereum. While ethereum’s market stands at just over $400 billion—roughly one-third of Bitcoin’s approximately $1.2—its liquidity accounts for only 10% compared to bitcoin’s.
Thus, an inflow of just a few billion dollars into ethereum could bring about noticeable changes in its price.
One pivotal with potential repercussions on ethereum’s price is when trading commences for spot ethereum ETFs. Recent reports suggest that these ETFs are likely to be greenlit during July first week with expectations for over $500 million inflow within six subsequent months.
Degentrading also emphasized an important point suggesting that Grayscale’s Ethereum Trust (ETHE) might undergo conversion into an ETF similar to what happened with Bitcoin.
Current Price of Ethereum
Apart from analysts’ insights, attention has been towards today’s price movement for ethereum amid recent speculations surrounding when trading may commence with respect to ethereum ETFs starting during July’s initial week.
Following this news development ,Ethereum exhibited a reversal from its decline reaching neutral ground .As per latest data available,Etherum stands at$3,380 ,reflecting growth if I>20 % increase over previous day .Its market cap stands above$ Bn stability despite dip .At same time we see trade volume standing at around$11+ Bn despite decrease hinting existing low investor activity .
It still remains unclear whether Etherum will experiences decline seen byBitcoin once its ETF launches next month .
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Disclaimer:
The information presented here should not be considered investment advice as cryptocurrency investments come with high volatility and risk.Inors are encouraged todo their own thorough research before making decisions
