Ether’s price could be on track to reach a new all-time high as the industry is about to witness the launch of the first spot Ether exchange-traded funds (ETFs), which could occur as soon as next week.
Ether could hit a new all-time high after next week’s ETH ETF launch
Ether’s (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, chief investment officer of Bitwise.
Hougan cited three main reasons for Ether reaching a new all-time high, including 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.
In a July 16 blog post, Hougan wrote:
“Ethereum’s inflation rate over the past year is exactly 0% […] Significant new demand meets 0% new supply? I like that math. And if activity on Ethereum ticks up, so does the amount of ETH being consumed. That’s another lever of organic demand working in investors’ favor.”
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 wrote in a July 19 X post:
“$126M worth of ETH was withdrawn from exchanges this week, signaling massive accumulation ahead of the ETF launch. Next big ETH rally incoming.”ETH: Balance on exchanges (total). Source: Leon Waidmann
$3,500 remains formidable resistance
However, Ether futures suggest 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) 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, which suggests that the asset is not yet overbought but is trading above its fair value, according to TradingView data.
ETH/USD, RSI, 1-day chart. Source: TradingView
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.
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