Here’s Why Analysts Are Cynical and Tough

Trailing Bitcoin and other top coins, Ethereum is in the red, bleeding in virtual values. In summary, Ethereum is down 20% from May 2024 highs, easily breaking $3,300, as the Bears target $3,000 in the short term.

Ethereum Down But Analysts Are Bullish: Here’s Why

However, amid this flood of sellers, some analysts remain pessimistic, expecting prices to stabilize in the coming months. Specifically, QCP analysts said there are reliable bullish signals to consider from the options market. Interestingly, the increase in bullish bets comes amid the imminent approval of Ethereum exchange-traded funds (ETFs).

QCP analysts noted that Ethereum options expiring in September and December are still attracting a lot of interest. Options give owners the right to sell or buy the underlying asset upon expiration. The premium for holding options can be sold at a premium or a discount, depending on market conditions.

With many traders placing calls and bets on rising prices, many are confident that ETH will shake off the current weakness and tear higher in the coming days.

QCP also shows the position of Bitcoin and Ethereum liquidation clusters. In technical analysis, these groups are referred to the key price levels there many shorts will be finishedwhich forces them to buy at a lower price and causes a short squeeze.

QCP says the liquidation sets for the top two assets are “skewed very high.” Anywhere the price increase may cause a short squeeze, providing relief for ETH holders and potentially exciting opportunities for others.

Eyes On US SEC And Spot ETH ETFs

Optimism is also high as the crypto market prepares for the debut of the Ethereum exchange-traded fund (ETF). In accordance with analyststhe product could go live in mid-July, following the approval of the 194-b forms in late May.

Bloomberg ETF analyst Eric Balchunas notes that the United States Securities and Exchange Commission (SEC) set up July 8 as the deadline for issuers to complete their S-1 forms.

When the Ethereum ETF starts trading, Matt Hougan, chief investment officer of Bitwise, thinks billions will be poured into the asset. In a memo to investors, the official he predicts $15 billion to find its way to ETH within the first 18 months.

Besides this, Hougan said that ETH will benefit from regulatory clarity, especially in the United States, and the increased adoption of stablecoins.

Featured image from Canva, chart from TradingView