TLDR

Analysts
are
eyeing
Ethereum
(ETH)
as
a
potential
game-changer,
with
some
suggesting
that
the
second-largest
cryptocurrency
by
market
capitalization

could
be
the
most
“asymmetric
bet”
in
the
current
market
conditions.

According
to
popular
crypto
analyst
Tyler,
Ether’s
price
reaching
the
$10,000
mark
could
be
the
best
bet
in
the
crypto
space,
despite
the
challenges
it
faces
in
breaking
above
the
$4,000
psychological
level.

#Ethereum
supply
on
exchanges
is
at
an
8-YEAR
LOW

Meanwhile
institutional
demand
will
be
unlocked
through
the

$ETH
ETF
in
July

You
don’t
need
to
have
a
degree
to
understand
what
is
about
to
happen

pic.twitter.com/6vZxP3Ogw7

—
Quinten
|
048.eth
(@QuintenFrancois)

June
18,
2024

Ether’s
price
has
been
in
a
downtrend
for
over
two
weeks,
trading
just
below
the
$3,400
mark
as
of
June
19,
2024.

 

However,
the
cryptocurrency
has
recently
experienced
a
5%
surge
following
the
U.S.
Securities
and
Exchange
Commission’s
(SEC)
announcement
that
it
would
conclude
its
investigation
into
Ethereum’s
security
status

.
This
development,
along
with
significant
whale
activity,
has
boosted
market
sentiment
and
optimism
surrounding
Ether.

One
of
the
key
factors
that
could
contribute
to
Ether’s
price
rally
is
the
anticipated
launch
of
the
first
spot
Ether
exchange-traded
funds
(ETFs).

These
ETFs
are
expected
to
start
trading
by
July
2,
according
to
Bloomberg
ETF
analyst
Eric
Balchunas,
although
SEC
Chair
Gary
Gensler
has
provided
a
broader
timeframe,
indicating
that
trading
could
begin
within
the
next
three
months.

Institutional
inflows
from
these
ETFs
could
potentially

drive
Ether’s
price
higher,
similar
to
how
Bitcoin
ETFs
accounted
for
about
75%
of
new
investment
in
the
world’s
largest
cryptocurrency
earlier
this
year.

 

Another
factor
supporting
Ether’s
upside
potential
is
the
reducing
supply
of
the
cryptocurrency
on
exchanges.
According
to
onchain
data
provider
CryptoQuant,
Ether’s
supply
on
exchanges
has
reached
an
eight-year
low
of
16.7
million
ETH,
following
a
9.3%
drop
over
the
past
90
days.

This
decrease
in
supply
could
lead
to
a
potential
supply
squeeze,
translating
into
more
upward
momentum
for
the
cryptocurrency,
as
noted
by
popular
crypto
analyst
Quinten
François.

#Ethereum
supply
on
exchanges
is
at
an
8-YEAR
LOW

Meanwhile
institutional
demand
will
be
unlocked
through
the

$ETH
ETF
in
July

You
don’t
need
to
have
a
degree
to
understand
what
is
about
to
happen

pic.twitter.com/6vZxP3Ogw7

—
Quinten
|
048.eth
(@QuintenFrancois)

June
18,
2024

Despite
the
bullish
predictions,
Ether
still
faces
significant
challenges
in
breaking
above
the
$4,000
psychological
mark
and
faces
resistance
at
the
$3,500
level.

A
potential
move
above
this
level
could
liquidate
over
$534
million
of
cumulative
leveraged
short
positions
across
all
exchanges,
with
short
liquidations
surpassing
$1
billion
if
Ether
were
to
rise
above
the
$3,586
mark.

 

The
SEC’s
recent
announcement
regarding
the
conclusion
of
its
investigation
into
Ethereum’s
security
status
has
further
bolstered
market
sentiment.
ConsenSys,
an
Ethereum
software
company,
has
been
in
communication
with
the
SEC,
seeking
clarification
on
the
status
of
the
investigation
and
the
potential
impact
of
spot
Ether
ETF
approvals
on
the
ongoing
probe.

The
company
has
also
expressed
its
commitment
to
seeking
additional
regulatory
clarity
regarding
its
user
interface
software,
MetaMask
Swaps,
and
Staking,
emphasizing
the
importance
of
establishing
explicit
guidelines
for
the
crypto
industry
to
flourish.

Go to Source
Author: Oliver Dale

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