By
Anisha Pandey
June 17th, 2024
The recent 20 percent rise of Ethereum price against the United States dollar has rejuvenated calls for anticipated altseason.
The recent approval of spot Ethereum (ETH) exchange-traded funds (ETFs) in Hong Kong has increased the chances of cash inflow from mainland China. As Coinspeaker reported, Hong Kong-based spot Ether ETFs have registered record-high daily cash inflows for the first time since inception.
Amid heightened demand for digital assets, the current United States government, led by President Joe Biden, is fast changing its stance on the altcoin industry. Furthermore, most of the US politicians seeking elective positions later this year have identified crypto investors as a solid and legitimate voting block.
Direct Impact on Ethereum Price Action
According to Nick Forster, the founder of Lyra decentralized protocol focused on options and spot trading, the possible approval of spot Ether ETFs in the United States will have a tangible impact similar to Bitcoin ETFs. Already, Lyra-based options traders have set Ether call options expiring in June and July above $5k.
“Lyra options markets are implying a 20 percent chance of Ethereum price reaching $5,000 by June 28. There is a 20 percent chance of Ethereum price moving above $5,500 by July 26, as Lyra traders have increased positioning post the ETF speculation,” Forster noted.
Forster further added that the approval of spot Ether ETFs in the United States will drive more volumes to the options market as traders navigate the volatile market to evade forced liquidations. Already, Ethereum’s market cap is around a third of Bitcoin’s before the approval of spot ETFs earlier this year. Therefore, it is prudent for derivatives crypto traders to anticipate and prepare for heightened volatility in the coming weeks.
Why Bet on Ether
Ethereum (ETH) has grown over the years to provide liquidity to the majority of the altcoin industry. As of this writing, Ethereum is the largest smart contract blockchain with more than $63 billion in total value locked (TVL) and over $80 billion in stablecoins market cap.
Most of the institutions seeking to tokenize real-world assets have opted for the Ethereum network due to its reliability and huge adoption.
As of this report, the Ethereum network has a market cap of about $444 billion, as the price hovered around $3,692.
Market Picture
The recent 20 percent rise of Ethereum price against the United States dollar has rejuvenated calls for anticipated altseason. Moreover, Bitcoin price has struggled to rally above $72k in the recent past, thus triggering crypto cash rotation to the altcoin market.
Already, some altcoins, led by frog-themed meme coin Pepe (PEPE), have rallied to their respective all-time highs amid heightened speculations.
From a technical standpoint, Bitcoin dominance has signaled an inevitable reversal, which could accelerate the rebound of the ETH/BTC pair and fuel the anticipated altseason.