Ethereum is falling at the time of writing, down about 18% from its March 2024 highs. While the bears seem to have a handle on spot rates and are keeping the second most valuable coin below $3,700, there is a lot of confidence among analysts.
Interest in ETH Futures on CME is growing
I’m going to X, one of them recorded that there are solid signs that institutions are preparing to raise prices. Citing the growing interest in Ethereum Futures on the CME exchange, the analyst said it is highly likely that “big money” is accumulating ETH taking advantage of the recent correction.
To confirm this outlook, the analyst said that the trend observed in open interest in Ethereum CME futures is a credible warning sign.
It’s worth noting that this trend mirrors what happened with Bitcoin futures prior to the introduction of cash ETFs. For this reason, the analyst believes that a similar pattern is printing for Ethereum.
Ethereum is currently printing discouraging lower lows. Sellers have shown resilience, dampening the momentum and limiting the bullish momentum.
So far, $3,700 appears to be a resistance level that investors should monitor closely. The bulls failed to trigger the counter after breaking it on June 7, and the bear breakout was confirmed four days later on June 11.
Despite current market conditions, the introduction of spot ETFs on Ethereum could continue to push prices to recent heights. The analyst predicts a potential expansion to $5,000, confirming the Q1 2024 trend and a break above the current flag.
However, whether the bulls take control depends on how the price action plays out. Technically speaking, open interest shows the cumulative summary of both open interest and long leveraged interest. If buyers push prices higher, ETH should surge in the coming days, even exceeding $3,700 this week.
Spot Ethereum ETF Optimism: Will They Succeed?
Additionally, the recent surge in activity around the Ethereum ETF spot app adds to this optimism. On June 21, seven applicants whose Forms 19b-4 were recently approved filed amended S-1 registration statements with the United States Securities and Exchange Commission (SEC). Analysts currently believe the regulator could approve trading of these products in early July 2024.
While Ethereum is bullish, some analysts aren’t convinced it will see similar success to what was seen when Bitcoin spot ETF trading began. Eric Balchunas, senior ETF analyst at Bloomberg, predicted this is where an Ethereum ETF would succeed if it captured just 20% of all capital inflows into its Bitcoin counterpart.
