Analyst Says ETH Price Will Struggle As Spot Ethereum ETFs Expectations Crash
July 31 2024 - 5:30AM
NEWSBTC
Pseudonymous trader and analyst Roman has made a bold prediction
regarding the ETH price, suggesting that investors should lower
their short-term expectations. This comes amid a drop in the hype
around the Spot Ethereum ETFs, with these funds currently suffering
significant outflows. What To Expect From The ETH Price Roman
mentioned during an interview with Hall of Flame that he doesn’t
see Ethereum “doing that well” for the next few months. The analyst
believes that ETH will suffer a similar fate to the rest of the
crypto market as Bitcoin sucks up all the liquidity while altcoins
continue to trade sideways due to this. Related Reading:
Analyst Identifies Bullish Pattern That Can Send XRP Price To New
Highs As such, Roman doesn’t expect the ETH price to enjoy any
parabolic rally until traders begin to rotate their capital from
Bitcoin into altcoins, with Ethereum likely to lead the pack when
that time comes. The analyst also noted that this period will
likely come when traders think Bitcoin is at or close to its market
top. The analyst highlighted the period in 2020 when Ethereum
“didn’t really do well” until the flagship crypto hit $40,000. He
noted that the ETH price was down 80% from its all-time high (ATH)
while Bitcoin broke ATHs. Indeed, Ethereum is currently suffering a
similar fate. Bitcoin hit a new ATH earlier this year, while ETH is
down over 33% from its current ATH of $4,890. Meanwhile,
Roman explained how Ethereum will rise from the ashes when Bitcoin
is almost or already at its peak. He stated that when Bitcoin
starts to experience a significant price correction, after hitting
a price target like $120,000, Bitcoin traders are taking profits
and rotating it into Ethereum and other altcoins.
Interestingly, the crypto trader suggested that Ethereum’s success
largely depends on Bitcoin. He claimed that the flagship crypto
needs to continue to break new highs and rally much higher for
money to flow into ETH and other altcoins. Meanwhile, Roman
believes that the liquidity shift will happen before
year-end. How Much Could Flow Into The Spot Ethereum ETFs
Expectations for the Spot Ethereum ETFs have dropped since they
began trading on July 23, with analysts like Sygnum Bank Head of
Research Katalin Tischhauser suggesting that inflows into these
funds could be lower than expected. Tischhauser told The
Block that the Spot Ethereum ETFs could witness as low as 15% of
Bitcoin’s flows, with around $5 flowing into these funds in their
first year of trading while $30 billion flows into the Spot Bitcoin
ETFs. Related Reading: Institutional Investors Show Interest In
Cardano, Triggering 300% Surge The analyst made this prediction
based on “Ethereum’s lesser name recognition” and ETH’s market cap
compared to Bitcoin’s, suggesting that the Spot Ethereum ETFs will
likely record less adoption and lower liquidity. These Spot
Ethereum ETFs have suffered significant net outflows since they
began trading thanks to Grayscale’s Ethereum Trust (ETHE). However,
these funds broke this streak of net outflows on July 30, with data
from Farside Investors showing that they recorded a net inflow of
$33.7 million. Featured image created with Dall.E, chart from
Tradingview.com
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