Ether futures show little confidence in the chance of ETH breaking above $4,000 in the near term.
Ether (ETH) price rallied 12.5% between July 12 and July 15, but strong resistance at $3,500 halted the bullish momentum. The subsequent correction down to $3,400 on July 18 occurred despite the United States Securities and Exchange Commission (SEC) approving two additional spot Ethereum exchange-traded funds (ETFs). Despite this positive development, Ether’s derivatives market has shown little excitement.
The SEC reportedly gave preliminary approval to at least three issuers to begin trading spot Ether ETFs on July 23. A total of eight spot Ether ETFs are awaiting final regulatory approval after amendments to the funds' S-1 filings. Bitwise Chief Investment Officer Matt Hougan expects Ether’s price to reach $5,000 by the end of 2024, citing its low equivalent inflation rate, lack of significant cost for validators, and 28% supply locked in staking.
Given the total crypto market capitalization gained 43% year-to-date in 2024, it is puzzling why Ether’s investors lack bullishness, despite the spot ETH ETF momentum. Furthermore, volumes on Ethereum decentralized applications (DApps) rose 7% in the last 30 days to $221 billion, according to DappRadar data. In comparison, competitor BNB Chain saw a 25% decline in activity, while Solana experienced a 16% drop in volumes.
