Amid the market slowdown, crypto analysts believe Ethereum (ETH) might be ready to retest key resistance levels again. Meanwhile, investors are expectant about the second-largest cryptocurrency performance as the final approval of spot ETH ETFs (exchange-traded funds) approaches.
Is Ethereum ETFs Approval Already Priced In?
The upcoming approval of spot Ethereum ETFs has crypto investors speculating about the launch’s impact on ETH’s performance. Renowned investor Daan Crypto Trades believes the news about the S-1 form approval won’t affect Ethereum’s price.
Per the trader, the announcement will play out like the 19b-4 approval news in May. Nearly two months ago, the rumors about the ETH ETFs decision by the Securities and Exchange Commission (SEC) fueled Ethereum’s rally.
The ‘king of altcoins’ surged over 30% in anticipation, going from $3,000 to $3,900. However, the token’s price did not see any further impact after the official announcement.
To Daan, the SEC’s approval won’t be bullish or bearish as it is “99%+ priced in.” The analysts added that “the real test will be the actual flows once the ETFs are live.”
Moreover, the trader considers the market will see a lot of Grayscale Ethereum Trust (ETHE) outflows, but not “as bad as we saw with GBTC.” Regarding the demand for the Ethereum ETFs, the crypto investor affirmed that 20% of spot BTC ETF inflows are expected.
The expectations will be that it’s anywhere from 10-30% of what BTC got in terms of inflows. I think ~20% is a pretty safe estimate. Anything higher would obviously be a nice surprise. ETH doesn’t need as many flows as BTC does to make it move after all. The market cap is 1/3th and there’s a lot of supply locked up in staking/defi products etc. Pretty thin market compared to BTC.
ETH 3x Rally In The Next Year
Crypto analyst Jelle considers that ETH could soon be able to retest key resistance levels. The second-largest cryptocurrency is “reclaiming the 200-day EMA, with the ETFs approaching fast.”
Per the post, If ETH successfully holds this level, the cryptocurrency could test the $4,000 mark. The analyst expects Ethereum to outperform Bitcoin in the following weeks. To him, the flagship cryptocurrency will have a “boring next few weeks” moving sideways.
Jelle also affirmed that investors are not “ready for it to melt faces,” commenting on those who doubt ETH. “Every cycle, people give up on ETH, saying it’s ‘dead tech’ – only to be proven wrong again,” he said.
ETH’s price has increased by 5.4% in the last week, currently trading at $3,121. Despite registering a 13% decrease in the past month, some market watchers believe ETH’s current price is a good inversion. “Anything close to $3k or below is free 3x in the next 12 months,” said pseudonym crypto analyst Poseidon.
Featured Image from Unsplash.com, Chart from TradingView.com