Ethereum Down But Analysts Are Bullish: Here’s Why
- WBOYOriginal
- 2024-07-16 12:30:38998browse
Following Bitcoin and other top coins, Ethereum is in red, bleeding at spot rates. In summary, Ethereum is down 20% from the May 2024 highs
Bitcoin and other top coins are bleeding at spot rates on Monday evening, as the recent bearish trend continues unabated. In summary, Bitcoin is down 20% from the May 2024 highs, easily breaking $33,000, as the bears target $30,000 in the short term.
Ethereum price is falling today, but analysts are bullish: Here's why
Meanwhile, some analysts expect prices to recover in the coming sessions despite this wave of floods. In particular, QCP analysts say that reliable bullish signals from the options market should be taken into account. Interestingly, the increase in bullish bets comes with the imminent confirmation of spot-priced Ethereum exchange-traded funds (ETFs).
QCP analysts observed that Ethereum options expiring in September and December are still seeing significant interest. Options give their holders the right to sell or buy the underlying asset at expiration. Depending on market conditions, the fee for holding options can trade at a large premium or discount.
As more traders place calls and bet on rising prices, more are confident that ETH will recover from the current weakness and move higher in the coming days.
QCP also Bitcoin and Ethereum It also draws attention to the location of liquidation clusters for In technical analysis, these clusters refer to important price levels where many short positions will be liquidated, forcing them to buy at a lower price, causing a short squeeze.
QCP says the liquidation clusters on the top two assets have “shifted substantially to the upside.” Any price increase could cause a short squeeze that provides relief to ETH holders and exciting opportunities for others.
Attention US SEC and Spot ETH ETFs
Optimism is also high as the crypto market prepares for the first spot on Ethereum. According to analysts, the product could launch in mid-July after 194-b forms are approved in late May.
Bloomberg ETF analyst Eric Balchunas said the United States Securities and Exchange Commission (SEC) has set a July 8 deadline for issuers to finalize their S-1 forms. said.
As soon as spot-priced Ethereum ETFs begin trading, Bitwise chief investment officer Matt Hougan expects billions of dollars to be poured into the asset. In a note to investors, the manager expects a staggering $15 billion to reach ETH in the first 18 months.
Beyond that, Hougan said ETH will benefit from regulatory clarity and increased adoption of stablecoins, especially in the United States.
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