Ethereum Price: 2 Reasons Why ETH Price is Rising ?

Cryptocurrency

Eyeing $5,000 As $15B Spot Ethereum ETF Inflows Linger? – Crypto News

Published

2 years ago

June 26, 2024

Dripp

Ethereum Price Forecast: As spot Ethereum ETFs trading nears, predictions hint at massive inflows of up to $15 billion. According to a report by Matt Hougan, a Bitwise investment officer the milestone could be achieved in just 18 months.

Meanwhile, the crypto market has been sending mixed signals this week, starting with a sell-off on Monday and an immediate recovery on Tuesday. Ethereum price hovered at $3,376 toward the US session on Wednesday, June 26, and after correcting by 5% in seven days.

Bitcoin had settled above $61,000 following a rebound from $60,000 support. CoinGecko data shows no change in the total market cap which holds at $2.386 trillion.

How Spot Ethereum ETFs Will Achieve $15B Net Inflows

According to Hougan’s analysis, investors are likely to buy Bitcoin and Ethereum ETFs based on their respective market shares.

Currently, Bitcoin accounts for a cumulative market value of 74%, with investors in the United States pumping $56 billion in BTC ETFs since the approval on January 10, 2024.

Bitwise anticipates that US investors will have put $100 billion in Bitcoin ETFs by the end of 2035, as more and more fund managers allocate funds to the digital product.

Hougan argued that “using this $100 billion figure as a reference, spot ether ETPs would need to attract $35 billion in assets to reach parity, a process I expect will take about 18 months.”

It is worth keeping in mind that the existing Grayscale Ethereum Trust is worth $10 billion and awaiting to convert to an ETF. This implies that Ethereum ETFs will need only $25 billion to reach the $35 billion target.

However, this is not likely to be the case considering in Canada, Ethereum ETPs make up between 22 – 23% of the total assets under management (AUM). In other words, Ether ETFs could underperform the total market cap weight.

Therefore, the Bitwise report cuts its estimate to $18 billion in 18 months where $3 billion is allocated to unforeseen market factors, arriving at the $15 billion spot Ethereum ETFs’ outlook.

Ethereum Price Forecast: When Is ETH Likely To Blast To $5,000?

Ethereum price is currently engulfed in uncertainty, the same uncertainty holding many cryptocurrencies including Bitcoin from advancing into the bull market.

Ethereum price forecast price chart | Tradingview

A descending channel on the four-hour chart guides the retreat from May’s peak of $3,972. The major support stands out at $3,300 as highlighted by the black band.

If broken, declines are likely to extend to $3,200 with $3,000 and $2,800 not too far away. The Relative Strength Index (RSI) downtrend reinforces the bearish grip, implying that the sell-off is not over.

On the positive side, the upcoming trading of spot Ethereum ETFs could change market sentiment, encouraging traders to long ETH for a breakout above $4,000.

This Ethereum price prediction reveals should ETF net inflows surge drastically, a rally might break out driving the smart contracts token to reach the $5,000 milestone.

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