Despite a muted response following the debut of spot Ether exchange-traded funds (ETFs), Ether’s price could be poised for unprecedented highs in 2024, according to market analysts.
“People should expect the unexpected. If the Ethereum community is looking for another reason to put it back in the spotlight, it has all the elements to rally like it has never seen before,” Swyftx lead market analyst Pav Hundal.
Hundal highlighted several factors contributing to this potential rally. One significant factor is the large amount of Ether currently being staked, which means it cannot be sold and is contributing to a tightening supply. The recent launch of ETFs and positive sentiment in the options market are also key elements.
“It is still more bullish than bearish. The put-call ratio, which is looking at speculators betting for upside, is 0.27, which is very, very bullish,” Hundal noted.
While Hundal refrained from specifying an exact price prediction, he believes the “nearer-term goal” is for Ether to hit its November 2021 all-time high of $4,890. However, he anticipates that its price “might be choppy” for the next 30 days. At the time of publication, Ether is trading at $3,450, down 1.27% over the past seven days, according to CoinMarketCap data.
Ether’s price is down 2.31% over the past seven days. Source: CoinMarketCap
The spot Ether ETFs trading debut on Tuesday, July 23, saw $106.6 million in net inflows, though Ether’s price barely moved, dropping slightly by 0.42% in the last 24 hours. “No fireworks for the price of Ether, although the first Ether ETFs got off to a good start today,” markets commentator Holger Zschaepitz wrote in an X post.
Investors appear to have viewed the spot Ether ETF launch as a good opportunity to accumulate Ether. On July 22, a day before the ETFs started trading, permanent holder addresses accumulated a record 714,000 ETH valued at $2.4 billion.
Meanwhile, Hundal advises traders to “ignore Ethereum’s previous prices” before the Merge, as the event provided Ether with more robust supply and demand mechanics. “Ever since deflationary mechanics were introduced, more deflationary elements on the product, a self-governing proof-of-stake, now when the market is busy, less Ethereum is being created,” he explained.
The combination of these factors sets the stage for what could be a significant rally for Ether in the coming months.
