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Ethereum (ETH) price rise often leads to altcoin recovery. Historically, this correlation is related to BTC market dominance. Investors inject more capital into altcoins as BTC.D weakens, causing Ether and altcoins to rise. So, what is the current situation?
Ethereum (ETH) and Altcoins
First, we must remember that even if the excitement has slightly waned, the Ether ETF approval and upcoming listing are significant. Although the launch was delayed by the SEC, Bloomberg Senior ETF analyst Eric Balchunas does not expect a date later than mid-July. This is because the SEC announced July 8 as the final date for S-1 Form approvals.
Since these forms have been updated many times, the final updates are now expected. Indeed, recent filings show details indicating the finalization, such as the initial capital and annual management fees for ETH.
Will Ether Price Increase?
The interest in Spot Bitcoin ETFs was exciting in the global ETF market. BTC ETFs, which have seen better days than the first Gold ETF years ago, also raise hopes for the soon-to-be-traded ETH ETFs.
An analyst from Steno Research wrote that up to $20 billion could flow into spot Ethereum ETFs in the first 12 months. How will this inflow affect the spot price? Analyst Mads Eberhardt’s year-end prediction is $6,500.
Ether Supply on Exchanges is Decreasing
According to CryptoQuant data, the total ETH supply on all crypto exchanges has fallen to July 2021 levels. Considering the massive ETH held in wallets due to NFT enthusiasm, today’s supply has achieved something significant by dropping to its old level despite the increase over the years.
Additional data from CryptoQuant shows that the total value of ETH staked in the Ethereum Beacon Chain has steadily increased since September 2021. This rise to 33.33 million ETH makes the supply contraction on exchanges more logical and attractive for price increases.
ETH Technical Analysis
If Ether’s price reaches $6,500 by year-end, we will see significant growth in altcoins. So, what is the current outlook for ETH? The SMA50 level of $3,536 is the main target for bulls. If this area can be won in the short term, a new attempt at $4,093 could occur. Otherwise, there is a risk of falling to $3,380 and $3,073.
