Ether Price Could Hit a New All-Time High After Next Week's ETH ETF Launch

Ether (ETH) price could be on track to a new all-time high after the launch of the first United States spot Ether ETFs, according to Matt Hougan

Ether’s ( ETH ) price could be on track to a new all-time high after the launch of the first United States spot Ether exchange-traded funds (ETFs), an executive said.

The launch of the ETFs is expected to occur as soon as next week.

Ether price to hit new ATH after next week’s ETF launch: Bitwise CIO

Ether’s price could hit a new all-time high after the launch of the first spot Ether ETFs in the United States, according to Matt Hougan, chief investment officer of Bitwise.

Hougan stated three main reasons for Ether to reach a new all-time high in a July 16 blog post. These include ETH’s inflation rate, the fact that Ether stakers aren’t selling like Bitcoin ( BTC ) miners and that 28% of Ether supply is already out of the market.

Hougan stated in the post:

Other factors also point to an incoming rally, including the number of Ether withdrawals from centralized exchanges, according to crypto analyst Leon Waidmann.

The analyst noted in a July 19 X post that the total Ether on centralized exchanges has dropped to a new all-time low in the past few months. According to Waidmann, the exchange outflows began around the time Ether fiyatı hit $1,200 in August 20221.

Hougan also noted that Ether stakers aren’t selling their ETH like BTC miners sell their BTC, which could contribute to ETH’s price rally. Hougan stated that BTC miners sell nearly all of their BTC as soon as they mine it, which puts pressure on BTC's price. However, Ether stakers lock up their ETH for an extended period and earn rewards for helping to secure the network.

Hougan further noted that around 28% of Ether’s total supply is already out of the market because it’s being staked or used in decentralized finance (DeFi) protocols. Hougan said that this leaves only 72% of ETH in the market that traders can buy or sell.

$3,500 remains a formidable resistance for ETH

However, Ether futures suggest that there is little confidence in the chance of Ether breaking above the $4,000 mark in the short term, as the $3,500 mark remains a significant resistance zone.

Ether’s relative strength index (RSI) on the dailyの時間枠 also suggests that Ether’s price needs to cool down before rallying to a new all-time high. On the daily chart, Ether’s RSI rose to 58, indicating that the asset is not yet overbought but is trading above its fair value, according to TradingView data.

The RSI is a popular momentum indicator used to measure whether an asset is oversold or overbought based on the magnitude of recent price changes.

After hitting a new all-time high, Ether fiyatı could face difficulties in rising further because of the resistance at the $4,000 level, according to crypto analyst Josh Lipton.

Lipton stated in a July 19 X post that Ether futures are indicating that there is little confidence in the chance of ETH breaking above the $4,000 mark in the short term. The analyst noted that the futures are showing that there is a higher chance of ETH falling below the $3,000 mark.

Lipton also stated that Ether’s price could see a sell-the-news event after the initial ETF launch before starting its sustained rally toward new all-time highs.

Kan told Cointelegraph that the initial hype around the ETF could lead to a sell-the-news event for ETH fiyatı in the short term. However, Kan said that ETH’s price will be able to climb in a more sustained manner after the initial shakeout.

Kan further stated that the Ether ETFs could also help propel ETH to new all-time highs in the long term. Kan said:

Other analysts expect the Ether ETF to have wider ramifications on the altcoin market. For instance, popular crypto trader Mikybull expects the ETFs to catalyze the next altcoin bull market cycle.

The trader stated in a July 19 X post that the ETFs could lead to a massive inflow of new capital into the crypto market, which could push BTC to new all-time highs and catalyze the next altcoin bull market.

ETH’s price rallied over 11% during the past week, but ETH is still trading 29% below its old all-time high of $4,890 reached in November 2021.