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The price of Ethereum is tracking lower as of writing, down nearly 18% from its March 2024 highs. Although the bears appear to be controlling spot prices, keeping the second most valuable coin below $3,700, confidence is high among Analysts.
Open interest for ETH futures on CME rises
Taking to X, one of them male There is strong evidence that institutions are positioning themselves to push prices higher. Citing rising open interest in Ethereum futures on CME, the analyst said it is very likely that “big money” will accumulate ETH, taking advantage of the recent correction.
Reaffirming these expectations, the analyst said that the observed trend of open interest in Ethereum CME futures is a reliable sign.
It is worth noting that this trend reflects what happened with Bitcoin futures contracts before their launch Bitcoin exchange-traded funds (ETFs). For this reason, the analyst is convinced that a similar pattern is being printed on Ethereum.
Right now, Ethereum is printing low inhibitors. Sellers have been resilient, limiting any momentum build-up and placing caps on the bulls.
So far, the $3,700 level appears to be a resistance level that traders should keep a close eye on. The bulls did not trigger any counter once it broke on June 7, and the bear breakout was confirmed four days later on June 11.
Despite the current market conditions, the launch of Ethereum ETFs could still push prices to new heights. The analyst expects a possible expansion to $5,000, confirming the Q1 2024 trend and a breakout above the current flag.
However, the bulls’ control depends on how the price action goes. Technically, open interest shows the cumulative sum of both open and long leveraged positions. If buyers push prices higher, ETH should expand in the coming days, even breaking $3,700 this week.
Ethereum ETF Optimism: Will It Work?
Furthermore, the recent flurry of activity surrounding Ethereum ETF applications reinforces this optimism. On June 21, seven of the applicants, whose Forms 19b-4 were recently approved, filed amended S-1 registration statements with the SEC. Analysts now believe the regulator could approve trading of these products by early July 2024.
Despite Ethereum’s bullish trend, some analysts are not convinced that it will enjoy success similar to that seen when Bitcoin exchange-traded funds began trading. Eric Balchunas, senior ETF analyst at Bloomberg And he expected This spot ETF will succeed if it captures just 20% of the total capital flow going into its Bitcoin counterpart.
