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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.
