Even as Ethereum, the world’s second most valuable cryptocurrency, charts an approximately 18% decrease from its March 2024 zeniths, analysts remain hopeful. The digital coin hovers just below the $3,700 mark and despite the bearish market conditions, experts see a silver lining.
One particular analyst cites significant indicators suggesting that large financial institutions are tactically aligning themselves to drive the price upwards. A noticeable rise in the open interest of Ethereum Futures at CME, a leading global marketplace, suggests that “big money” entities are steadily amassing Ethereum, exploiting the current market downturn.
This trend mirrors the Bitcoin futures pattern seen prior to the initiation of spot Bitcoin exchange-traded funds (ETFs). The same analyst sees a similar weaving pattern for Ethereum, causing a perceptible ripple of anticipation in digital markets.
In the present scenario, Ethereum maintains a disheartening cascade of lower lows. Sellers exert a strong influence, stifling any momentum surge and exerting downward pressure on bullish traders.
Currently, the $3,700 mark is emerging as a significant resistance level. Once this threshold was breached on June 7, bullish traders did not retaliate, and a bear breakout was decisively confirmed four days later on June 11.
Nonetheless, despite the underwhelming market conditions, the introduction of Ethereum spot ETFs could prove to be Ethereum’s golden ticket, potentially catapulting prices to new stratospheric heights. A potential upsurge to the $5,000 mark is plausible, affirming the first quarter 2024 trend and signifying a development beyond the current limit.
However, the command of the bulls is contingent on how the price action evolves. Open interest, an aggregate of both long and open leveraged positions, may have an important role to play. If the price sees an upward push by buyers, Ethereum is likely to make gains in the upcoming days, possibly even breaching the $3,700 barrier within a week.
Adding fuel to this optimism is the whirlwind of commotion around spot Ethereum ETF applications. On June 21, seven applicants who recently had their 19b-4 forms approved, presented revised S-1 registration statements to the United States Securities and Exchange Commission (SEC). Now, market watchers are of the opinion that the SEC may green light the trading of these products by as early as July 2024.
