Here’s Why Analysts Are Defiant And Bullish

Following Bitcoin and other major coins, Ethereum has also fallen in spot rates and is in the red. In summary, Ethereum is down 20% from its May 2024 high and is easily below $3,300, while Bears’ short-term target is $3,000.

Ethereum is down, but analysts are bullish: Here’s why

However, amid this selling spree, some analysts remain defiant and expect prices to recover in the coming sessions. Specifically, QCP analysts Said The options market is providing some credible bullish signals to consider. Interestingly, the surge in bullish bets comes amid the imminent approval of a spot Ethereum exchange-traded fund (ETF).

QCP analysts noted that Ethereum options expiring in September and December continue to attract significant interest. Options give the holder the right to sell or buy the underlying asset upon expiration. The fees for holding options can be high, and they can trade at a significant premium or discount, depending on market conditions.

As more traders place calls and bet on a price rise, more are becoming convinced that ETH will shake off its current weakness and surge in the coming days.

Ethereum price trending down on daily chart | Source: ETHUSDT on Binance and TradingView

QCP also points out the position of Bitcoin and Ethereum liquidation clusters. Technical analysis shows that these clusters are key Price Level many Short pants are To be liquidatedThis forces them to buy at lower prices, triggering a short squeeze.

QCP said the top two asset liquidation clusters were “highly skewed towards the upper end.” A sudden rise in price could trigger a short squeeze, providing relief to ETH holders and creating an exciting opportunity for others.

US SEC and Spot ETH ETF in Focus

Optimism is also growing as the cryptocurrency market prepares for the first spot on an Ethereum exchange-traded fund (ETF). AnalystThe product could be up and running in mid-July following Form 194-b approval 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 S-1 forms is July 8th.

Bitwise Chief Investment Officer Matt Hogan believes billions of dollars will be pumped into the asset once spot trading of the Ethereum ETF begins. In a note to investors, the executive said: Predict Within the first 18 months, a whopping $15 billion would flow into ETH.

Additionally, Hogan said ETH would benefit from regulatory clarity, especially in the United States, and increased adoption of stablecoins.

Featured image from Canva, chart from TradingView

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