Ethereum price data points to impending rally above $3.4K
Three key Ethereum price metrics suggest ETH is primed for a rally above $3,400.
Ether (ETH) price experienced an 18% drop to $2,826 between July 1 and July 8 but has since partially recovered. Investors are understandably disappointed, particularly since $313 million in leveraged long positions were liquidated during this period. Although the current price of $3,100 is still below the previous $3,400 support level, Ether traders are gradually regaining their confidence, as indicated by onchain and derivatives metrics.
Even if the launch of the spot Ethereum exchange-traded fund (ETF) in the United States takes longer than expected, strong fundamentals suggest a likely price rebound soon. Gary Gensler, Chair of the US Securities and Exchange Commission, recently stated that approvals for S-1 filings are expected “sometime in the summer,” which means before the end of September. However, the exact timeline remains uncertain, leaving traders with reasons to maintain a level of skepticism.
The excitement for the eventual launch grows as similar spot Bitcoin (BTC) ETFs have seen $654 million in inflows over the past three days. Matt Hougan, Bitwise’s Chief Investment Officer, suggested that spot Ethereum ETFs could attract up to $15 billion in inflows in the first 18 months of trading. Even if this estimate is off by 50%, analysts believe that the Ether price will benefit from the portion of the supply that is locked in staking and decentralized applications (DApps).
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Author: Marcel Pechman
