Is Ethereum (ETH) About To Retest $4,000? Analyst Foresees 3x Rally
Amid the market slowdown, crypto analysts believe Ethereum (ETH) might be ready to retest key resistance levels again. Meanwhile, investors are expectant about the second-largest cryptocurrency performance as the final approval of spot ETH ETFs (exchange-traded funds) approaches.
Is Ethereum ETFs Approval Already Priced In?
The upcoming approval of spot Ethereum ETFs has crypto investors speculating about the launchs impact on ETHs performance. Renowned investor Daan Crypto Trades believes the news about the S-1 form approval wont affect Ethereums price.
Per the trader, the announcement will play out like the 19b-4 approval news in May. Nearly two months ago, the rumors about the ETH ETFs decision by the Securities and Exchange Commission (SEC) fueled Ethereums rally.
The king of altcoins surged over 30% in anticipation, going from $3,000 to $3,900. However, the tokens price did not see any further impact after the official announcement.
To Daan, the SECs approval wont be bullish or bearish as it is 99%+ priced in. The analysts added that the real test will be the actual flows once the ETFs are live.
Moreover, the trader considers the market will see a lot of Grayscale Ethereum Trust (ETHE) outflows, but not as bad as we saw with GBTC. Regarding the demand for the Ethereum ETFs, the crypto investor affirmed that 20% of spot BTC ETF inflows are expected.
The expectations will be that its anywhere from 10-30% of what BTC got in terms of inflows. I think ~20% is a pretty safe estimate. Anything higher would obviously be a nice surprise. ETH doesnt need as many flows as BTC does to make it move after all. The market cap is 1/3th and theres a lot of supply locked up in staking/defi products etc. Pretty thin market compared to BTC.
ETH 3x Rally In The Next Year
Crypto analyst Jelle considers that ETH could soon be able to retest key resistance levels. The second-largest cryptocurrency is reclaiming the 200-day EMA, with the ETFs approaching fast.
Per the post, If ETH successfully holds this level, the cryptocurrency could test the $4,000 mark. The analyst expects Ethereum to outperform Bitcoin in the following weeks. To him, the flagship cryptocurrency will have a boring next few weeks moving sideways.
Jelle also affirmed that investors are not ready for it to melt faces, commenting on those who doubt ETH. Every cycle, people give up on ETH, saying its dead tech only to be proven wrong again, he said.
ETHs price has increased by 5.4% in the last week, currently trading at $3,121. Despite registering a 13% decrease in the past month, some market watchers believe ETHs current price is a good inversion. Anything close to $3k or below is free 3x in the next 12 months, said pseudonym crypto analyst Poseidon.
Source: NewsBTC.com
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