In the dynamic world of cryptocurrency, analysts are closely tracking Ether’s trajectory following the recent Bitcoin halving, despite its recent 11.39% price dip over the last month. With Ether (ETH) currently trading at $3,320, historical data hints at the possibility of a substantial upsurge in value in the aftermath of the Bitcoin halving event.
One key consideration is the looming decision on an exchange-traded fund (ETF) for Ether. Jupiter Zheng, Head of Research at Hashkey Capital, believes that even if the ETF proposal faces denial, it may not necessarily lead to a bearish market. Zheng points out that the market hasn’t fully factored in the ETF decision yet, and traditional funds still have avenues like Bitcoin ETFs for entry.
However, Zheng highlights the potential bullish impact if a spot Ether ETF incorporating staking gets the green light. Such approval could trigger a cascade of short liquidations, potentially driving up Ether’s price further. The recent dip in Ether’s price triggered a substantial amount of liquidations, totaling $39.13 million in long positions over the past 24 hours, according to CoinGlass data.
Additionally, short positions amounting to $15.66 million were also liquidated within the same timeframe. At its current price, even a slight 1.5% drop to $3,250 could result in approximately $70.96 million in liquidations. Despite these fluctuations, analysts suggest that Ether futures open interest may not see a significant impact, given the market’s current stance. With $12.89 billion in Ether futures open interest, Ethereum still trails Bitcoin’s $31.744 billion in open interest, which is approximately 2.5 times larger.
Looking at historical patterns, trader Jelle identifies a familiar ascending triangle forming on Ether’s price chart leading up to the Bitcoin halving on April 20. This pattern resembles the behavior observed before the previous Bitcoin halving, signaling a potential surge in Ether’s value. While some remain optimistic about the approval of a spot Ether ETF, recent reports indicate a degree of uncertainty. The U.S. Securities and Exchange Commission’s (SEC) scrutiny of the Ethereum Foundation and its initiatives has cast a shadow of doubt.
The SEC’s ongoing assessment, due by May 23, could significantly influence the fate of Ether ETF applications, potentially shaping Ethereum’s future trajectory in the market. In the midst of mounting anticipation and uncertainty, investors and analysts closely monitor developments in the cryptocurrency landscape. They remain poised for potential shifts in market dynamics and eagerly await the outcome of the SEC’s assessment, recognizing its potential to shape Ethereum’s future trajectory in the market.