May 25, 2024
Ether's Post-Halving Surge: Analysts Assess ETF Impact
Bitcoin Halving

Ether’s Post-Halving Surge: Analysts Assess ETF Impact

Crypto analysts are eyeing a potential surge in Ether’s price post the Bitcoin halving, despite its recent 11.39% decline over the past month. Jupiter Zheng, a crypto researcher, suggests that historical data indicates a significant upswing in Ether’s price within months after the Bitcoin halving event.

ETF Decision’s Impact

Jupiter Zheng downplays the potential impact of an Exchange-Traded Fund (ETF) denial on Ether’s price, stating that the market isn’t heavily factoring it in. According to Zheng, the approval of a spot Ether ETF with staking could drive prices higher, triggering short liquidations and further boosting the market.

Market Liquidations and Open Interest

The recent dip in Ether’s price resulted in significant liquidations, with $39.13 million in long positions and $16.10 million in short positions being liquidated over the past 24 hours. With a current price of $3,293, even a slight drop to $3,250 could lead to approximately $70.96 million in liquidations. Despite this, Zheng believes that it won’t heavily impact ETH futures open interest, which currently stands at $12.89 billion.

 Source: CoinGlass

Identified Pattern on Ether’s Price Chart

Trader Jelle has identified a pattern on Ether’s price chart leading up to the Bitcoin halving on April 20, similar to the pattern observed before the previous Bitcoin halving. Jelle notes an ascending triangle forming on Ether’s price chart since June 2023, signaling a potential surge ahead.

Less Optimism Surrounding Spot Ether ETF Approval

Recent reports suggest diminished optimism regarding the approval of spot Ether ETFs, following investigations by the United States Securities and Exchange Commission (SEC) into the Ethereum Foundation. The SEC issued subpoenas to companies associated with the Ethereum Foundation, leading to speculation about the classification of ETH as a security.

Conclusion 

While Ether’s price may see a surge post the Bitcoin halving, the potential approval or denial of a spot Ether ETF and regulatory actions by the SEC remain significant factors influencing its future trajectory.

Image by Bastian Riccardi from Pixabay

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