Highlights
Ethereum price has crashed by 12% since the spot ETF approval on July 23. Solana, popularly termed an ‘Ethereum competitor,’ is up only 1.55%. With the recent developments, if SOL does not step up its game, ETH will likely outperform it.
Read more: Ethereum Client Releases Important Stability Fix Ahead Pectra Upgrade
As explained in the previous Ethereum post, Ether prices closely follow Bitcoin’s post-ETF footsteps. However, the rate of change for ETH is much higher. Where Bitcoin price crashed 21% in 12 days, Ether price crashed nearly 13% in just three days.
After the ETF launch, Bitcoin and Ethereum faced outflow pressure from their respective Grayscale products. However, with ETH, 10% of the Grayscale Ethereum Trust (ETHE) will be converted toward mini-spot Ethereum ETF purposes, thereby alleviating a massive source of selling pressure.
Therefore, if the outlook for Bitcoin remains the same, Ethereum price could have already bottomed and could be setting up the stage for a post-ETF rally.
The ETH staking rate, the total ETH 2.0 staling balance divided by the total Ethereum supply, has hit an all-time high (ATH) of 28.1%. This metric paints a wildly bullish outlook for ETH investors.
The total ETH held on exchanges has dropped to a five-month low of nearly 17 million. Further exacerbating the reduced supply.
As mentioned earlier, Grayscale’s outflows currently dominate; hence, the cumulative net flows as of July 29 stand at $439.64 million. But as the outflows cool down and inflows start to pick up, the reduced supply of ETH will likely have a sudden positive impact on Ether price and potentially kickstart an explosive rally.
All in all, if Ether’s fundamentals keep getting strong it is unlikely the altcoin will remain capped. In such a case, the Ethereum price forecast hints at a revisit of the $4,000 psychological level. Beyond this level, ETH could overcome the current ATH of $4,878 and tag the $5,000 level.
Related Articles
Pi Network price has crashed by over 90% from its highest level since its mainnet…
The Solana price continues to capture attention, with renewed focus coming from both analysts and…
Cardano price continues to draw fresh attention as the market shows signs of renewed strength.…
BONK price has drawn attention once again as its chart structure hints at renewed interest…
Shiba Inu price has crashed in the past few months, moving from a high of…
XRP price has shown renewed strength in the last 24 hours, recording a modest daily…