Where is ETH headed after ETF approvals?

TL;DR

SEC approval of ETH ETFs has increased volatility, with analysts predicting potential rallies and significant future growth. Positive on-chain metrics such as increasing TVL and negative exchange net flow indicate a potential bull run for Ethereum. ETH’s next possible step

Ethereum made headlines last week after the US Securities and Exchange Commission (SEC) gave the official green light to the launch of ETH ETFs in the world’s largest economy. The approval occurred on May 24 and, as expected, led to increased volatility in the asset.

Its price went through severe ups and downs in the $3,650-$3,950 range before settling at its current level of around $3,800 (according to CoinGecko data).

X user Jelle argued that ETH is consolidating above the “key support area” of approximately $3,750, expecting “the market to narrow in this area for a while, at least until Monday”. Advising investors to “not fall into boredom,” the analyst predicted a rally above $4,500 in the coming months.

Yoddha and Satoshi Flipper were also optimistic. The former claimed that ETH’s bull cycle is about to begin and could lead to a price explosion up to $20,000.

Satoshi Flipper envisioned a bright future for Ethereum based on the assumption that major global banks and financial institutions will enter its ecosystem after the SEC gives the thumbs up to the aforementioned ETFs.

Remember that one of Singapore’s biggest banks, DBS Bank, was recently revealed as a crypto whale, holding 173,753 ETH. The stock is currently valued at nearly $670 million.

Taking a look at chain metrics

The price of ETH has skyrocketed substantially in the past year, jumping more than 100%. The positive trend coincides with the increase in essential metrics surrounding the ecosystem.

ETH price, Source: CoinGecko

According to DefiLlama, the total value locked in Ethereum has increased impressively since October 2023 and currently stands at nearly $65 billion. TVL is a key indicator that refers to the total value of assets that are being staked, loaned, lent, or otherwise used within decentralized finance (DeFi) protocols on the Ethereum blockchain.

Its increase suggests more capital is flowing into the ecosystem, which in turn could reflect positive market sentiment.

Another bullish metric is Ethereum’s net exchange flow, which has been predominantly negative over the past seven days. Some may view the shift from centralized platforms to self-custody methods as bullish for ETH’s valuation as it reduces immediate selling pressure.

ETH Netflow, Source: CryptoQuant SPECIAL OFFER (Sponsored) Binance Free $600 (exclusive of CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

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