Ethereum (ETH) Futures ETF Approval Could Drive Price Rally
The price of Ethereum (ETH) surged by 3% on September 28, reaching $1,650, following speculation from Bloomberg Analyst Eric Balchunas that the US Securities and Exchange Commission (SEC) might approve an Ethereum Futures ETF. This news has sparked a significant increase in capital inflows to ETH derivatives markets. If the market projections hold true, how high can Ethereum prices go?
Ethereum Open Interest Reaches 40-day Peak with $450m Inflows
After Balchunas hinted at a possible Futures ETF approval via Twitter, aggregate ETH Open Interest rose from $4.16 billion to $4.51 billion within 24 hours. This indicates that investors have added $450 million in inflows to the ETH Futures market in anticipation of the SEC’s potential approval. An uptrend in Open Interest is a bullish signal and suggests an influx of new market participants and fresh capital inflows.
Bullish Sentiment Spreading to Spot Markets
On-chain data reveals that investors have been piling up orders in the spot markets alongside the boost in confidence in Ethereum derivatives markets. Bulls have placed active orders to buy 500,000 ETH, significantly surpassing the 433,670 ETH currently up for sale. The market demand for Ethereum has exceeded supply by more than 66,330 ETH, indicating increased confidence among retail market participants.
ETH Price Prediction: Potential Rally Toward $2,500
If the anticipated ETF approval triggers a spot market reaction, ETH price could potentially reclaim $2,500. The Global In/Out of Money Around Price (GIOM) data supports this prediction. If Ethereum clears the $1,850 resistance level, it could rally toward $2,500. However, a drop below $1,500 could invalidate the positive prediction and potentially lead to a reversal.
Hot Take: ETH Price Set to Soar with ETF Approval
If the SEC approves the Ethereum Futures ETF, it could lead to a significant price rally for ETH. With an increase in capital inflows to derivatives markets and strong demand in the spot markets, Ethereum has the potential to surpass $2,500. However, if the support level of $1,500 is not maintained, it could open the door to a bearish reversal. Keep an eye on the SEC’s decision and market reactions for potential trading opportunities.
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