Speculators Flowing To ETH As Bulls Set Sight On $3,700

Like Bitcoin and top altcoins, including Solana, Ethereum is holding steady. At the time of writing, it is trading above the local support at $3,300 and floating higher, targeting $3,700.

Ethereum (ETH) price shows strength on Monday, holding above the local support at $3,300 and targeting $3,700 as bulls remain strong.

The leg up comes as anticipation builds for the launch of spot Ethereum ETFs in the next few days. As seen on the daily chart, news of the U.S. Securities and Exchange Commission (SEC) fast-tracking the approval of 19b-4 forms sparked a wave of demand from May 20.

However, speculators are also entering the scene as prices remain steady and uptrend. According to CryptoQuant data, the estimated leverage ratio has risen in the past few trading days.

This reading shows that the scene is receiving more leveraged traders who are keen on profiting from price volatility rather than benefiting from what ETH as a digital asset presents.

According to CryptoQuant, the estimated leverage ratio stood at 0.347 on July 16 before rising to 0.354 on July 17. The expansion suggests that traders are increasingly borrowing funds on perpetual trading platforms like Binance and OKX, hoping to make a killing if ETH bulls push prices above $3,700.

As prices rally, the estimated leverage ratio will likely climb even higher. The local top is at 0.358, as recorded on July 14. The all-time leverage ratio was at 0.392, registered in early July 2024.

Eyes On Spot Ethereum ETFs: Will It Be A Success?

Meanwhile, ETH traders have their eyes set on the launch of spot Ethereum ETFs, which they believe will push prices up, even breaching all-time highs.

The latest reports indicate that the derivative product will launch early next week, enabling institutional investors to gain exposure. The U.S. SEC has approved three issuers to launch.

However, it is expected that all spot Ethereum ETF applicants whose 19b-4 forms have been approved will be permitted to launch simultaneously.

There is optimism that spot Ethereum ETFs will mirror the success of their spot Bitcoin ETFs. According to SosoValue, all spot Bitcoin ETF issuers collectively manage over $53 billion of BTC as of July 18.

Despite the anticipation and expected positive impact on prices, the product will likely experience a different level of demand compared to when spot Bitcoin ETFs launched.

Analysts attribute this to Ethereum’s lower market cap and the U.S. SEC’s decision not to allow spot ETF issuers to stake ETH. By staking, issuers would receive rewards on behalf of their clients.