Following Bitcoin and other top coins, Ethereum is in the red and bleeding at the spot price. In short, Ethereum has fallen 20% from its May 2024 high, easily breaking $3,300, and the bears’ short-term target is $3,000.
Ethereum Down, But Analysts Expect Bullish: Here’s Why
However, even amid this seller frenzy, some analysts remain resistant and expect prices to recover in the coming sessions. In particular, QCP analysts said The options market is showing a reliable bullish signal, so take note. Interestingly, the surge in bullish betting comes amid the impending approval of a spot Ethereum exchange-traded fund (ETF).
QCP analysts observed that Ethereum options expiring in September and December are still attracting significant interest. Options give the holder the right to sell or buy the underlying asset at expiration. The fees for holding options can trade at a significant premium or discount depending on market conditions.
As more and more traders place calls and bet on a price rally, there is a growing number of people who are confident that ETH will break out of its current bearish streak and rally in the coming days.
QCP also points out the location of liquidation clusters for Bitcoin and Ethereum. In technical analysis, these clusters indicate: key The price levels are as follows: many The shorts be liquidatedThis forces them to buy at lower prices, creating a short squeeze.
QCP says the liquidation clusters for the top two assets are “heavily skewed toward the top.” A price surge could trigger a short squeeze, providing relief to ETH holders and potentially interesting opportunities for others.
Focus on US SEC and Spot ETH ETF
Optimism is also rising as the cryptocurrency market prepares to take the number one spot in Ethereum exchange-traded funds (ETFs). AnalystThe product is expected to be available in mid-July following approval of Form 194-b in late May.
Bloomberg ETF analyst Eric Balchunas said the U.S. Securities and Exchange Commission (SEC) set The deadline for issuers to finalize their Form S-1 is July 8.
When the Spot Ethereum ETF begins trading, Bitwise’s chief investment officer, Matt Hougan, believes billions of dollars will be invested in the asset. In a note to investors, the executive said: predict A whopping $15 billion flowed into ETH in the first 18 months.
Additionally, Hougan said ETH would benefit from regulatory clarity and increased adoption of stablecoins, especially in the United States.
Feature image from Canva, chart from TradingView