Charting Ethereum’s Trajectory as Investors Prep for Its Next Leap Forward

Ethereum’s been on a carousel of fluctuations over the last few years, succeeding in overtaking any other altcoin and becoming the only cryptocurrency to challenge Bitcoin’s dominance. Since it went live in 2015, seven years after the emergence of the first and largest crypto, the ETH price has risen by over 120,000% thanks to the groundbreaking developments it harbingered, which in turn influences the eth price prediction. The supremacy of the decentralized finance (DeFi) economy and the dominance of smart contracts are just two of the biggest catalysts to Ethereum’s preeminence. Ethereum managed to become a store of value like Bitcoin, besides being digital money or collateral.

Yet, as applaudable as Ethereum’s last decade has been regarding its price performance and share of investors’ portfolios, it may take off its ascending ramp in the weeks to come. How is this, and why should you care?

ETF’s launch could change Ethereum’s path

The road to the launch of spot exchange-traded funds, shortened ETFs, has been long and dotted with obstacles. These financial vehicles have recently stolen the spotlight, as both seasoned and newbie investors have continuously mentioned them, and the media coverage has been all about it. To remove any confusion, let’s look at them as investment tools that allow the user to leverage the worthiness of a distinct asset without actually introducing it to their portfolio.

Until not long ago, you could only invest in Bitcoin and Ethereum via a few routes. For instance, crypto exchange platforms rank highly in investors’ preferences, for they would enable purchasers and sellers to deposit fiat currency like the U.S.D or G.B.P, exchange parts of the sum for entire or fractions of cryptos, and store the money in the platform’s offered digital wallet if they wanted to. Similarly to an online brokerage, on a crypto exchange platform, users would take advantage of the benefits for a fee, leveraging the actual market price of the asset.

Once the exchange-traded fund tracking ETH hit the market, it opened up the crypto to a new buyer group, which may add some extra pressure on its deflationary supply. The crypto industry broke new ground when ETH started trading on U.S. exchanges on 23 July – only six months after Bitcoin’s ETF approval. Now, the asset is being unlocked by a nascent category of deep-pocketed buyers. Interested parties can acquire and sell the main cryptos out there from brokerage accounts daily, bringing the crypto sector into a more positive light.

ETFs coexisting with traditional crypto exchange platforms

A spot ETH ETF represents an investment vehicle that pools investors’ capital to buy the crypto immediately. To expose users to Ethereum’s worthiness without sending orders on crypto platform exchanges, the nine investment firms had to acquire Ethereum. Nevertheless, seasoned investors are sticking with the old stagers in the industry, namely online crypto exchange platforms. Spot ETH ETFs are established like grantor trusts, meaning asset ownership is split between investor and owner. Investors only get a part of the Ether detained by the trust, and part of the remaining ETH is directed toward tax payments.

As Bloomberg Intelligence disclosed, all nine Ethereum ETFs jointly boasted a whopping $1.1BN in trading volume on 23 July.

Who are ETH ETFs a good fit for?

Ether ETFs provide a more traditional method of investing or capitalizing on the booming crypto market. The direct pathway to getting Ethereum involves a digital wallet and exchange platform, where users determine whether hot or cold storage better meets their needs. Investors who want to escape this process may resort to ETFs after agreeing to share ownership with the trust.

ETH ETFs may work for long-term investors looking to diversify their portfolios or those seeking revolutionary blockchain technology exposure. Nevertheless, in both situations, Ethereum continues to be a high-risk investment whose main part of intrinsic value is supported by its wide range of dApps and smart contracts.

Ethereum is sideways – What’s its potential shortly?

Ethereum is on a sideways channel pattern, building strong support and resistance levels. Its support level positions at $2,860, a level that’s already been tested seven times and showed that it can jump to peaks as high as $4,080 in the past. Thanks to the recent approval and launch of Ethereum ETFs and the overall optimistic feeling in the cryptocurrency market, Ethereum’s future looks promising enough to bring more newcomers and seasoned investors to the yard.

Examining its price chart through the high-time-frame lenses discloses that the crypto is momentarily sideways. The current tendency is described by price consolidation within precise bounds and short of an apparent upward or downward trajectory.

This recurrent testing is a sign of solid demand for the asset, as purchasers tend to break into the market around this level to evade further price drops. This support zone was vital in pushing Ethereum to a preceding swing high of $4,080 before starting to decline, indicating that a continued hold at this point may result in another upward shift. Ethereum bulls may have to conquer a considerable resistance level to back up a more significant uptrend and rejoice over rewards.

Ethereum’s near-term horizon fuels the bullishness of the market sentiment

The overall cryptocurrency market sentiment continues to be bullish, especially since the latest ETF approval regarding Ethereum. The crypto market enjoys more legitimacy than ever, which is good, considering the once-shadowy corner where digital currency lay before. Ethereum is heading towards regulated mainstream finance and, together with it, an increasingly more significant part of the crypto realm.

Wrapping it up

In August, the second-best crypto’s price is expected to trade within the $3,6K-$3,8 range, with a slight chance of breaking out to $4K in the upcoming month. Some strong bullish trends in October could push it to new all-time highs.

Thanks to the Ethereum ETFs’ approval and the constantly positive tech indicators, the asset’s market price could be at the dawn of a new, substantial escalation. All these occur while future price growth and a more solid position are on the horizon in the cryptocurrency market in the upcoming weeks.