Kaiko said that the arrival of spot Ethereum ETf could further improve the liquidity conditions for ETH. Additionally, it could also help in reducing ETH price volatility over time.
By Bhushan Akolkar
Edited by Julia Sakovich
Updated
2 mins read
As the launch of the spot Ethereum ETF nears, institutional players are closely observing the ETH price action. In its latest report, Kaiko showed strong optimism on Ethereum’s future market performance.
Kaiko predicted that Ethereum could outperform Bitcoin with the upcoming launch of the spot Ethereum ETFs scheduled within the next two weeks. Not only Ethereum, Kaiko believes that the development will catalyze the broader market momentum leading to greater institutional inflows.
The Kaiko Research report specifically focuses on Ethereum’s market performance relative to Bitcoin. Following the approval of the 19b-4 filings for spot Ethereum ETF on May 23, the ETH/BTC ratio has surged from 00.45 to 0.050.
This ratio, a crucial metric for comparing the two assets, indicates that Ethereum could continue to gain traction, particularly with the introduction of ETFs.
Photo: Kaiko
During the recent crypto market sell-off, the ETH price crashed all the way to $2,700. However, amid the broader market recovery, the Ethereum price has too bounced back and is currently trading around $3,400.
Kaiko observed that overall liquidity conditions for Ethereum (ETH) have remained stable, despite the usual decrease in trading volumes during the summer months.
They highlighted that Ethereum’s 1% market depth has stayed around $230 million since the approval of the spot ETFs. This market depth refers to the volume of Ethereum that can be bought or sold near the last traded price without significantly impacting the price.
However, Kaiko in its concluding report stated that the arrival of spot Ethereum ETf could further improve the liquidity conditions for ETH. Additionally, it could also help in reducing ETH price volatility over time.
For years, Ethereum has managed to attract traditional investors due to its smart contract functionality and the large number of decentralized applications (dApps) that it hosts.
According to Eric Balchunas, senior ETF analyst for Bloomberg, the Ethereum ETF is anticipated to launch on Tuesday, July 23rd. Balchunas also predicts that the final submission for the S-1 forms to happen this Wednesday.
A perspective on $ETH
Support was found at lower boundary of 4+ month rectangle, which was a retest of the Feb completion of a horn bottom
Target, pending upside completion, is 5600+ pic.twitter.com/EThcM61KpW— Peter Brandt (@PeterLBrandt) July 15, 2024
If we move as per this timeline, we can expect the ETH price to rally further all the way to $4,000 by the end of July. As per the technical chart, popular trader Peter Brandt expects the ETH price to shoot all the way to $5,600.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
