ETH Post to Halve, Denial of ETF ‘No Win’ – Analysts
Crypto analysts are betting that the price of Ether (ETH) will see a big rally in the coming months, despite falling 11.39% over the past 30 days.
One researcher also thinks that potential exchange-traded fund (ETF) declines will not lower prices.
“If ETFs are banned, it won't be that much of a depression, because the market is still undervalued and we still have Bitcoin ETFs as an introduction to traditional funds,” Jupiter Zeng, research director at Hashkey Capital, told Cointelegraph.
However, Zeng believes that if an Ether ETF is allowed in stocks, it will be “really bullish.”
He explained that the approval would trigger an increase in liquidity in the short term, which could further boost the price.
This week's sharp drop in Ether's price has resulted in the loss of about $39.13 million in long positions over the past 24 hours, according to CoinGlass data.
Additionally, a total of $15.66 million worth of short positions were voided during the same period.
At the current price of $3,293, a 1.5% drop to just $3,250 would see $70.96 million in liquidity.
Although he predicts that it won't have a big impact on ETH's future open demand, the market “doesn't have a serious bet on it.”
There is currently $12.89 billion in Ether Futures open interest (OI). Meanwhile, Bitcoin (BTC) is roughly 2.5x higher in OI at $31.744 billion.
Clear the pattern described on the Ether price chart
Meanwhile, popular trader Jelle observed a trend on Ether's price chart leading up to the April 20 Bitcoin halving, which he said was reminiscent of the previous Bitcoin halving.
“The last half of Bitcoin was a sign of ETH to run hard,” said crypto trader Jelle.
The last bitcoin halving was in 2018. It happened on May 11, 2020, which set the price of Ether at around $210. On August 14th, just three months later, ETH rose to $433, showing a 106% price increase, according to CoinMarketCap data.
A clear ascending triangle formed on Ether's price chart since June 2023 has been seen on the view from May 2020, indicating that it is likely to increase in the future.
Meanwhile, Zeng predicted that “ETH's season is yet to come.”
Related: SEC Seeks Comments on Fidelity, Grayscale and Bitwise Spot Ether ETF Applications
However, recent reports indicate that there is little optimism about spot ether ETF approval after the United States Securities and Exchange Commission investigated the Ethereum Foundation.
On March 20, Cointelegraph reported that the SEC issued several subpoenas to companies working with the Ethereum Foundation. Sources familiar with the matter said the commission has launched a campaign to declassify ETH as secure by 2022.
Magazine: Jameson Lopp: Space Ether ETFs Doubtful, BTC Price Prediction Dilemma: X Hall of Flame
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
