Ethereum
Where is ETH going after ETF approvals?
TL;DR
- The SEC’s approval of ETH ETFs has increased volatility, with analysts predicting potential rebounds and significant future growth.
- Positive on-chain metrics, such as increasing TVL and negative net exchange flow, indicate a possible bull run for Ethereum.
The next possible step for ETH
Ethereum made headlines last week after the United States Securities and Exchange Commission (SEC) officially green light the launch of ETH ETFs in the world’s largest economy. The approval took place on May 24 and, as expected, it led to increased volatility in the asset.
Its price saw significant ups and downs between $3,650 and $3,950 before stabilizing at its current level of around $3,800 (according to CoinGecko data).
User X Jelle argued that ETH consolidates above the “key support zone” around $3,750, expecting “the market to move around this zone for a while, at least until Monday “. The analyst advised investors not to “fall into the trap of boredom”, predicting a rally above the $4,500 mark in the following months.
Yoddha and Satoshi Flipper were also optimistic. The old claims that the ETH bull cycle is about to begin and could fuel a price explosion of up to $20,000.
Satoshi Flipper considered a bright future for Ethereum based on the assumption that major global banks and financial institutions will enter its ecosystem after the SEC abandons the aforementioned ETFs.
Recall that one of the largest banks in Singapore, DBS Bank, was recently revealed as a crypto whale, holding 173,753 ETH. Currently, the reserve is valued at nearly $670 million.
Taking a Closer Look at On-Chain Metrics
The price of ETH has risen significantly over the past year, marking a jump of over 100%. This positive trend coincides with the rise of essential measures surrounding the ecosystem.
According to DefiLlama, the total value locked on Ethereum has resurrected impressively since October 2023 and currently stands at almost $65 billion. TVL is a key metric that refers to the total value of assets currently staked, lent, borrowed, or otherwise used in decentralized finance (DeFi) protocols on the Ethereum blockchain.
Its increase suggests that more capital is flowing into the ecosystem, which could, in turn, reflect positive market sentiment.
Another bullish metric is the Ethereum exchange’s net flow, which has been mostly negative over the past seven days. Some might consider the change centralized platforms to self-custody methods as bullish for ETH valuation as they reduce immediate selling pressure.
ETH Netflow, source: CryptoQuant
Source