Forecast

Ethereum ETFs Debut in the US: A Potential Catalyst for ETH Rally

Tina Collins

Jul 26, 2024 — 1 min read

Key Market Movers: Ethereum ETFs and Bitcoin Conference

This week could be explosive for Ethereum as spot ETH ETFs launch in the US on Tuesday. The SEC has approved the S-1 registration statements of several Ethereum ETF issuers. NYSE Arca and Cboe will list and begin trading multiple Ethereum ETFs, including those from Grayscale, Bitwise, Fidelity, and VanEck. Additionally, the Bitcoin 2024 Conference starts on July 25, potentially driving a rally in Bitcoin and benefiting Ethereum due to its positive correlation.

Market Sentiment and Inflows

Traditional investors are showing bullish sentiment towards the launch of ETH ETFs. Ethereum investment products recorded $45 million in inflows last week, bringing the year-to-date net flows to $103 million. Experts predict that ETH ETFs could see inflows of $3 billion to $5 billion within the first six months. This influx of investment is expected to support Ethereum prices and drive further interest in the cryptocurrency.

Technical Analysis: Uncertainty Amid Bullish Predictions

Despite bullish predictions surrounding the ETH ETF launch, Ethereum traders display uncertainty. ETH is trading around $3,460, down nearly 1%. The market expects increased volatility this week, with implied volatility jumping from 56% to 70%. The ETH options market shows a concentration around the $3,700 strike price with a Put/Call Ratio favoring calls, indicating a bullish sentiment. However, the ETH futures Long/Short Ratio of 0.88 shows a bearish outlook among futures traders. If ETH gains momentum, it could rise to $3,731, while downside support is around $3,205.

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