Rewritten Article:
Ethereum (ETH) experienced a significant drop at the beginning of 2023, but the start of2024 brought positive changes. The price surged by about 50% from January st and exceeded $4,000 by March. However, a recent 11% decline the last month has raised concerns in the market.
Analyst’s Perspective on Ethereum
the recent price drop, degentrading, a well-known crypto analyst, remains optimistic about Ethereum’s future. predicts that Ethereum will reach $6,000 by September 2024. Stay updated financial and business news by visiting COINTURK FINANCE.
This prediction came about afterism Capital’s founder Andrew Kang expressed caution regarding the upcoming entry of Ethereum spot exchange-traded funds (ETFs) into the US market.
Factors Contributing to Ethereum Rise
Degentrading bases their bullish outlook on several key factors. One important factor is that CME open interest for Ethereum increased by $5 after news of ETFs broke out. This increase in trading potential could attract significant capital the Ethereum market.
Another significant point is comparing liquidity between Ethereum and Bitcoin. Although Bitcoin’s value is approximately $1.2 trillion compared to Ethereum’s just over $400 billion Bitcoin boasts liquidity that is ten times greater than Ethereum’s.
As a result, even a few billion dollars flowing into Ethereum could have a noticeable impact on its price.
The start of trading for spot Ethereum ETFs also holds great potential for influencing its price. reports suggest that these ETFs may be approved within the first week of July with an expected inflow of over $500 million within six months following approval.
Degading also highlighted Grayscale’s possibility to convert their existing product – Grayscale’s Ethereum Trust (ETHE) – into an ETF similar to what happened with Bitcoin.
Current Price and Future Outlook
Aside from analysts’ views, attention is focused on today’s ethereum price amid speculations around when ETH ETF trading will commence (potentially in early July).
Following this news, ethereum saw its decline reverse and reached a neutral position in terms of pricing dynamics. As per current information available at time of writing this article; it stands at $3,380 – reflecting an increase of 0.20% over the past twenty-four hours.
The market cap for ethereum presently amounts to $406 billion which remains above $400 billion while trade volume dropped by 10%, reaching approximately$11.69 billion suggesting ongoing low investor interest.
It remains uncertain whether ethereum will experience a similar downward trend like bitcoin if ETH ETF trading begins next month
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Disclaimer
This article does not provide investment advice as cryptocurrencies carry high volatility and risks associated with; investors should conduct thorough research before making any investment decisions
