Bitrabo Editorial
Similar to Bitcoin and other major altcoins like Solana, Ethereum continues its stable performance with trading prices holding above $3,300 and aiming for $3,700.
Growing Interest of Speculators in ETH as Bulls Push for $3,700
The upward movement is primarily driven by various market factors, notably the imminent launch of spot Ethereum ETFs expected shortly. A surge in demand has been noticed since May 20 following news of the United States Securities and Exchange Commission (SEC) expediting the approval of 19b-4 forms.
Despite the steady rise in prices and positive trends, speculators are entering the market, as indicated by an increase in estimated leverage ratios in recent trading days. This rise suggests a growing number of leveraged traders looking to capitalize on price fluctuations rather than the intrinsic value of Ethereum as a digital asset.
According to CryptoQuant, the estimated leverage ratio was 0.347 on July 16, climbing to 0.354 on July 17, indicating a rising trend of traders borrowing funds from platforms like Binance and OKX in hopes of profitable returns if ETH prices surpass $3,700.
As the price surge continues, the estimated leverage ratio is expected to increase further, with a recent high at 0.358 on July 14 and an all-time peak of 0.392 noted in early July 2024.
Anticipation for Spot Ethereum ETFs Launch: A Potential Game-Changer?
Traders are optimistic about a price surge, possibly surpassing previous highs, upon the introduction of spot ETH ETFs. Recent reports suggest the launch of this derivative product in the upcoming week, enabling institutional investors to participate in the Ethereum market.
The SEC has granted approval to three issuers for the launch, with expectations that all approved spot Ethereum ETF applicants will be allowed to launch simultaneously. It is believed that the success of spot Ethereum ETFs will mirror that of spot Bitcoin ETFs, currently managing over $53 billion in BTC as of July 18, according to SosoValue.
While the launch of spot Ethereum ETFs is highly anticipated and likely to influence prices positively, it is expected to attract a different level of demand compared to the introduction of spot Bitcoin ETFs. Analysts attribute this difference to Ethereum’s lower market cap and the SEC’s decision not to permit spot ETF issuers to stake ETH, thereby excluding the opportunity for issuers to earn rewards on behalf of their clients.