Crypto traders say Ethereum ‘undervalued,’ expect spot ETH ETF to fuel new highs
2024.07.23 13:47
Analysts believe Ether (ETH) price could rally to all-time highs over the next couple of months following the launch of the first-ever spot Ethereum exchange-traded funds (ETFs) in the United States. Traders believe these funds are “heavily undervalued.”
The spot ETH ETFs started trading on July 23, a day after the US Securities and Exchange Commission (SEC) gave the final approval to issuers, including BlackRock, Fidelity, 21Shares, Bitwise, Franklin Templeton, VanEck and Invesco Galaxy.
Within just 15 minutes of trading, the ETFs recorded an impressive volume of $120 million.
ETH/USD 1-hour chart. Source: TradingView
“The $ETH ETF has insane numbers. First 15 minutes already 50% of Bitcoin’s first day in terms of volume: $112 million,” Michaël van de Poppe, founder and CEO of trading firm MNTrading, wrote in his own X response.
“The Ethereum ETF launch is heavily undervalued, and I expect it to trade towards an ATH in the coming 1-2 months.”
Meanwhile, fellow trader Daan Crypto Trades described the initial flows as “decent,’ predicting heightened crypto market volatility.
“Going to be a volatile day ahead with lots of movement, I’m assuming!”
In an earlier post, Daan Crypto Trades shared the following chart showing the key levels ETH price needed to clear in its recovery path.
According to their analysis, Ether bulls needed to overcome resistance from a stubborn supply zone stretching from $2,672 to $3,730 to secure the uptrend. This was also dependent on holding firmly above $3,350.
“ETH needs to hold $3,350, and it would look strong. Expecting a lot of movement these days surrounding the ETF launch.”
ETH/USD four-hour chart. Source: Daan Crypto Trades
“ETH’s price hits $3,450 as investors buckle up for a wild ride,” declared crypto investor Alessa Mutto in a July 23 post on X, adding, “I am very bullish about crypto and ETFs and believe they will go parabolic in the next few years.”
However, Mutto admitted that, with time, spot Ethereum inflows will tell where Ether’s price will go moving forward.
Related: Bitcoin gains $1.2K in 1 hour as BTC price rebounds on Ether ETF launch
Spot ETH ETFs see $360 million in trading volume in the first 90 minutes of trading
Spot Ethereum ETFs have accumulated $361 million in combined trading volume one and a half hours into trading, according to data compiled by Bloomberg Senior ETF analyst Eric Balchunas.
Source: Eric Balchunas
In an earlier post, Balchunas provided insight into the volumes by comparing them to when spot Bitcoin ETFs began trading in the United States on Jan. 11.
“Here’s volume after the first 15 minutes of trading. Total of $112m traded for the group (which is only about half of what Bitcoin ETFs’ volume pace was on DAY ONE, although 50% would exceed expectations IMO).”
US-based spot Bitcoin ETFs have been heralded by market participants as the most successful ETF launch ever. The funds have seen $300 billion of cumulative trading volume in the first six months, bringing the total assets under management to $62.12 billion as of July 22.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
