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Tuesday, June 11, 2024
HomeCryptoETH Could Turn Up as Ethereum Ecosystem Sees Impressive Q1 Earnings

ETH Could Turn Up as Ethereum Ecosystem Sees Impressive Q1 Earnings

Ethereum (ETH) price fell 2.2% on Tuesday as exchange supply hit a record low following increased inflows into global ETH ETFs. Meanwhile, publishers plan to market Ethereum as the ‘ultimate app store’.

Market Focus: Low exchange supply, high ETF flows, ultimate app store

Despite the weakness in ETH price, Ethereum has made some incredible gains in recent days.

According to data from Glassnode, only 10.5% of the total ETH supply remained on exchanges as of June 8. Along with the decrease in exchange supply, data from IntoTheBlock shows that large investors (the addresses with >10K ETH) recorded net inflows of 267K ETH on Thursday, the highest daily accumulation since March. This shows that investors are increasingly optimistic about ETH, possibly due to expectations of spot ETH ETFs.

Recent research by Bitwise revealed that cryptocurrency protocols on Ethereum generated more revenue than Robinhood, Reddit, Yelp, and Etsy in Q1 2024. “These apps are a testament to resilience, innovation and vision of the global cryptocurrency industry,” Bitwise said.

Global Ethereum ETFs saw about $69 million in inflows — the highest level since March. Inflows into ETH ETFs are likely to continue to increase as investors expect spot ETH ETFs to begin trading in the US in the coming weeks.

These high flows follow predictions from Bitfinex Head of Derivatives, Jag Kooner, that spot Ethereum ETFs could attract around 10-20% of the flows seen in spot Bitcoin ETFs .

He builds his predictions on the historical inflows seen in the Gold ETFs after their launch in 2004 and how it paved the way for further inflows in the Silver ETFs launched in 2006 Bloomberg analyst Eric Balchunas previously shared a similar analysis comparing Bitcoin to Gold and Ethereum to Silver ETFs.

Meanwhile, executives from Van Eck, 21Shares and Franklin Templeton, discussed the potential demand for Ethereum ETFs in a recent session moderated by Eric Balchunas. According to Balchunas, the executives positioned “Ethereum as a ‘maker tech stock,’ the ‘ultimate app store,’ a very different marketing approach than BTC.”

Technical Analysis: ETH Could See a Potential Bullish Reversal

ETH is trading around $3,6000 on Tuesday after US Nonfarm Payrolls (NFP) data on Friday dampened expectations of a potential breakout above the $3,900 resistance. The NFP news caused ETH to fall below the $3,618 support level before recovering slightly.

ETH/USDT 4-hour chart | Source: TradingView

According to data from Laevitas.ch, the ETH futures premium percentage fell from around 15% to 13% on Tuesday – the lowest level since the SEC’s response to spot ETH ETFs – reported signs that investor interest is decreasing. The premium of futures contracts holds around 5% to 10% under neutral market conditions.

ETH open interest (OI) also decreased from $16.97 billion on June 6 to $16.37 billion on Tuesday, a decrease of $600 million. However, considering price fell faster than open interest, investors may remain confident of a bullish reversal, suggesting the downside move may be temporary.

As a result, ETH is likely to maintain a sideways move with the trend slightly tilted towards the upside. The $3,900 resistance level is a key price level that ETH needs to overcome for any significant upward move. A break and sustain below the $3,618 support will invalidate the bullish thesis.

You can see ETH price here.

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN_Nour

According to Fxstreet

Mark Tyson
Mark Tyson
Freelance News Writer. Always interested in the way in which technology can change people's lives, and that is why I also advise individuals and companies when it comes to adopting all the advances in Apple devices and services.
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