Ethereum price could soon go parabolic, analysts say

Ethereum price has held up relatively well in recent days as chances of spot ETF approval have increased. ETH The token was trading at $3,455 on Friday, a few points above this week’s low of $3,233. It remains in a correction zone after falling 13% from its highest point this month.

The main catalyst for Ethereum is the anticipated spot approval of the Ethereum ETF by the Securities and Exchange Commission (SEC). As we reported on Thursday, there is a growing possibility that spot Ethereum ETFs will start trading soon.

The growing anticipation came after VanEck filed Form 8-A, which is an important document in the ETF application process. Eric Balchunas, senior ETF analyst at Bloomberg, estimates that these funds will begin trading on July 2.

Approval of Ethereum spot ETFs would be a big deal. As we saw with Bitcoin, there is strong demand for cryptocurrencies from institutional investors.

Similarly, the Grayscale Ethereum Trust (ETHE), which has a 2.50% feehas more than $10 billion in assets. As such, low-cost funds will likely see strong demand from both retail and institutional investors.

Ethereum ETFs will also begin trading at a time when exchange balances continue to decline, as shown below.

Ethereum reserves in exchanges

The Ethereum ecosystem is still doing well even as the selloff of cryptocurrencies continues. The network has over $108.95 billion total value locked (TVL) and nearly $80 billion in stablecoins. It has collected $1.65 billion in fees, more than Tron and Bitcoin combined.

Analysts are optimistic about Ethereum price

Some top crypto analysts believe that Ethereum is on the cusp of a bullish breakout. In an X thread, Rekt Finance noted that Ethereum’s open interest in the futures market is increasing, which is a sign of institutional demand ahead of the ETF approval.

He also noted that Ether is a deflationary asset that has consistently reduced its supply over time. Overall, he expects ETH to surge after the ETF approval, then move into a consolidation or pullback as many Grayscale Ethereum fund holders move to cheaper options, and then resume its uptrend.

In another tweet, Crypto Roverwhich has over 700,000 subscribers, noted that Ethereum has formed a descending channel that resembles a descending wedge pattern. In most cases, this is one of the bullish patterns that support the upside potential. He expects that the breakout could happen soon.

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