Since the optimism of the listing of Ethereum spot ETF, the price of Ethereum has surged from $3,100 to nearly $4,000, reaching a two-month high. Analysts have three reasons to believe that ETH’s performance will be stronger than BTC’s and may reach the target price of $10,000 by the end of the year.
Firstly, the growth of internet activity has contributed to the continuous increase in Ethereum’s network activity. According to DappRadar, the transaction volume of Ethereum’s DApps in the past week reached $58.81 billion, an increase of 7.5%. CryptoQuant data shows that the number of smart contracts on Ethereum has also increased from 37,870 on May 20 to 38,066 on May 31. Additionally, the Ethereum meme coin $PEPE has also reached new highs. These data indicate the continued growth of Ethereum’s network activity, which helps to promote the burning of ETH, reduce the supply, and facilitate price increases.
Secondly, the possibility of the listing of Ethereum spot ETF has increased the bullish momentum of ETH. Bloomberg ETF analyst Eric Balchunas estimated that the Ethereum spot ETF will be launched on July 4, but with BlackRock’s submission of modified S-1 documents, he believes that it is also highly likely to be officially launched at the end of June. Cobo founder Discus Fish also predicted that the S-1 document for the Ethereum spot ETF may be approved in mid-June. However, regardless of the timing, it is a fact that the Ethereum spot ETF will be launched in the second half of the year.
Lastly, from a technical perspective, the ETH/BTC ratio has been rising since May 17 and reached a two-month high of 0.05744 on May 27, with an increase of over 28%. Nancy Lubale and trader Michaël van de Poppe both believe that the trend reversal has begun, indicating a bullish trend for ETH.
With the imminent approval of the Ethereum spot ETF, market participants generally believe that this will stimulate the ETH price to reach new highs. Standard Chartered Bank expects the price of Ether to reach $8,000 by the end of this year, and Nexo’s Chief Broker Andrey Stoychev is even more optimistic.
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