TL;DR
- The SEC’s approval of ETH ETFs has increased volatility, with analysts predicting potential rallies and significant future growth.
- Positive on-chain metrics, like rising TVL and negative exchange netflow, indicate a possible bull run for Ethereum.
ETH’s Next Possible Step
Ethereum made the headlines last week after the US Securities and Exchange Commission (SEC) officially greenlighted the launch of ETH ETFs in the world’s largest economy. The approval happened on May 24, and somewhat expectedly, it caused enhanced volatility for the asset.
Its price passed through severe ups and downs in the range of $3,650-$3,950 before settling to its current level of around $3,800 (per CoinGecko’s data).
The X user Jelle argued that ETH is consolidating above “the key support area” of approximately $3,750, expecting “the market to chop around this area for a while, at least until Monday.” The analyst advised investors not to “fall for the boredom stakeout,” predicting a rally above the $4,500 mark in the following months.
Yoddha and Satoshi Flipper were also optimistic. The former claimed that ETH’s bull cycle is about to begin and could fuel a price explosion of as high as $20,000.
Satoshi Flipper envisioned a bright future for Ethereum based on the assumption that major world banks and financial institutions will enter its ecosystem after the SEC gave the thumbs up on the aforementioned ETFs.
Recall that one of Singapore’s largest banks—DBS Bank—was recently revealed as a crypto whale, holding 173,753 ETH. Currently, the stash is valued at almost $670 million.
Taking a Closer Look at On-Chain Metrics
ETH’s price has soared substantially in the past year, marking a jump of over 100%. The positive trend coincides with the rise of essential metrics surrounding the ecosystem.
According to DefiLlama, the total value locked on Ethereum has risen impressively since October 2023 and currently stands at almost $65 billion. TVL is a key indicator that refers to the total value of assets currently being staked, lent, borrowed, or otherwise utilized within decentralized finance (DeFi) protocols on the Ethereum blockchain.
Its increase suggests that more capital is flowing into the ecosystem, which could, in turn, reflect positive market sentiment.
Another bullish metric is the Ethereum exchange netflow, which has been predominantly negative in the last seven days. Some may consider the shift from centralized platforms to self-custody methods as bullish for ETH’s valuation since it reduces the immediate selling pressure.
The post Ethereum Price Forecasts: Where Is ETH Headed After the ETF Approvals? appeared first on CryptoPotato.
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