Ethereum (ETH) Price Predictions: ‘Buy the Dip’ Opportunity or Further Pain for Bulls?

04.07.2024 / Payment system news

TL;DR

  • Ethereum (ETH) has faced significant declines, currently around $3,200, but some analysts remain bullish, predicting potential rebounds and an all-time high of $8,000.
  • The upcoming launch of spot Ethereum ETFs, expected to attract $3-$5 billion in net inflows, could boost investor confidence and drive ETH’s price higher, similar to the impact seen with spot BTC ETFs earlier this year.

What’s Next for ETH?

Ethereum (ETH), similar to many other leading cryptocurrencies, has been severely affected by the latest market correction. Its price currently hovers at around $3,200 (per CoinGecko’s data), representing a 5% daily decline and 15% on a monthly scale.

ETH Price, Source: CoinGecko

According to some industry participants, though, the negative trend may soon be replaced by a fresh uptick. The X user Poseidon claimed the “future is bright,” and ETH is poised for an all-time high of $8,000.

Captain Faibik was also bullish, forecasting that the price of the second-largest cryptocurrency “will bounce back hard,” meaning it currently offers a great “buy the dip” opportunity.

On the other hand, there are some worrying signs that Ethereum’s freefall may continue in the coming days. The popular crypto analyst, using the X handle Crypto Tony, claimed that everything would be under control as long as ETH’s valuation remains above $3,270. The asset lost that resistance level a few hours ago.

Waiting for the ETF Launch

One important factor that could place ETH back into green territory is the launch of spot Ethereum ETFs (expected this month). Recall that the US Securities and Exchange Commission (SEC) approved multiple such products earlier this year, but they are not yet live.

According to crypto exchange Gemini, the official introduction of spot ETH ETFs in America could attract net inflows in the range of $3-$5 billion within the first six months of trading. The move might improve the asset’s market position, moving it closer to the leader Bitcoin (BTC), the analysis reads. 

Spot ETFs will make it easier for traditional investors to gain exposure to Ethereum without needing to hold the cryptocurrency directly. This removes some hurdles, such as self-custody, for example.

The launch of those products could also be seen as a positive signal for the legitimacy and acceptance of ETH and the broader cryptocurrency market. As a result, investor confidence could be significantly boosted, leading to a potential fresh flow of capital and a subsequent price rally. 

Recall that the US SEC greenlighted spot BTC ETFs in January this year. The price of the primary digital asset hit an all-time high of over $73,500 approximately two months after that.

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