The latest Crypto Derivatives Analytics Report from Bybit in collaboration with BlockScholes reveals a significant change in market attitude, with investors now favoring Ethereum (ETH).
The analysis shows that compared to Bitcoin (BTC) there is a increasing level of optimism surrounding ETH due to important market indicators and upcoming legislative changes.
Source: Bybit Analytics
Strong bullish indications despite market volatility
The Ether Spot ETFs set to launch soon in the United States are expected to provide a major boost to the adoption of the world’s largest altcoin and potentially its price forecast as well.
Ethereum futures have overtaken BTC the recovery of outstanding interest, indicating a strong market narrative supporting Ethereum’s long-term prospects.
Source: Bybit Analytics
The increase in trading volumes of ETH perpetual contracts is an indication that investors are taking calculated risks to get ahead of expected market turning points, such as the introduction of an ETF.
Increased price momentum and options activity
Market volatility for ETH options is still high, especially when it comes to waiting for ETF approvals. This is in stark contrast to BTC options, which show a more cautious approach.
The research shows a stable premium in ETH options volatility across a range of term structure maturities, indicating robust market expectations for future price movements.
In the past 24 hours, The price of Ethereum has increased by 4% to $3,472. There are a handful of spot ETH ETFs expected to go live on July 23 after receiving preliminary approval from the U.S. Securities and Exchange Commission.
Experts predict that these legislative achievements will lead to significant financial inflows into Ethereum, potentially pushing its price to $4,000 and beyond.
ETH market cap currently at $408 billion. Chart: TradingView.com
An overview of Ethereum prices
In the past few days, Ethereum has undergone a significant price change. During the period when the overall market was in decline, the price of ETH dropped to $2,811, but since Bitcoin started to rise again, ETH has followed suit.
Ethereum’s development reached its end at $3,484 after previously establishing a “double bottom” on the 4-hour chart.
ETH up in the last 24 hours. Source: Coingecko
With $3,570 and $3,800 as likely resistance levels, Ethereum is predicted to see further gains in price. Should the bears prevail, Ethereum may find favor at $3,350, in line with the 21-day and 50-day Simple Moving Averages (SMAs).
ETF introduction sparks investor interest
The SEC has given preliminary approval to three issuers, fueling Ethereum’s market momentum ahead of Spot ETH ETFs scheduled to launch. Eric Balchunas, a Bloomberg ETF specialist, predicts high trading volumes and institutional interest when trading opens on Tuesday.
According to Eugene Cheung, Head of Institutions at Bybit, Ethereum’s price rebound can be attributed to investor optimism over the ETF certification. Higher liquidity and expectations of institutional involvement help position the market favorably.
Main image from Techopedia, chart from TradingView