Here’s Why Analysts Are Defiant And Bullish

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

Ethereum
Down
But
Analysts
Are
Bullish:
Here’s
Why

However,
amid
this
deluge
of
sellers,
some
analysts
remain
defiant,
expecting
prices
to
recover
in
the
coming
sessions.
Specifically,
QCP
analysts

said

there
are
reliable
bullish
signals
to
consider
coming
from
the
options
market.
Interestingly,
the
surge
in
bullish
bets
comes
amid
the
imminent
approval
of
spot
Ethereum
exchange-traded
funds
(ETFs).

QCP
analysts
observed
that
options
for
Ethereum
expiring
in
September
and
December
are
still
attracting
significant
interest.
Options
give
holders
the
right
to
sell
or
buy
the
underlying
asset
on
expiry.
The
fee
to
hold
the
options
can
be
traded
at
a
huge
premium
or
discount,
depending
on
market
conditions.

With
more
traders
placing
calls
and
betting
on
increasing
prices,
more
are
confident
that
ETH
will
shake
off
the
current
weakness
and
rip
higher
in
the
coming
days.

QCP
also
points
to
the
positioning
of
liquidation
clusters
for
Bitcoin
and
Ethereum.
In
technical
analysis,
these
clusters
refer
to

key

price
levels
where

many

shorts
will

be
liquidated,
forcing
them
to
buy
at
a
lower
price
and
triggering
a
short
squeeze.

QCP
says
the
liquidation
clusters
in
the
top
two
assets
are
“heavily
skewed
to
the
topside.”
Any price
surge
could
trigger
a
short
squeeze,
providing
relief
to
ETH
holders
and
potentially
exciting
opportunities
for
others.

Eyes
On
The
US
SEC
And
Spot
ETH
ETFs

Optimism
is
also
high
as
the
crypto
market
prepares
for
the
first
spot
in
the
Ethereum
exchange-traded
fund
(ETF).
According
to

analysts,
the
product
could
go
live
in
mid-July,
following
the
approval
of
194-b
forms
in
late
May.

Bloomberg
ETF
analyst
Eric
Balchunas
notes
that
the
United
States
Securities
and
Exchange
Commission
(SEC)
has

set

July
8
as
the
deadline
for
issuers
to
finalize
their
S-1
forms.

Once
spot
Ethereum
ETFs
begin
trading,
Matt
Hougan,
the
chief
investment
officer
of
Bitwise,
thinks
billions
will
be
poured
into
the
asset.
In
a
memo
to
investors,
the
executive

predicts

a
staggering
$15
billion
to
find
its
way
to
ETH
within
the
first
18
months.

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

Feature
image
from
Canva,
chart
from
TradingView