ETH Price Analysis: 3 Things to Expect after Ethereum ETF Official Launch

Ethereum Price Forecast:

Ethereum price opened trading at $3,439 on July 23, ahead of spot ETH ETFs launch, on-chain data trends provide early signals on what to expect in the days ahead.

Ethereum price opened trading at $3,439 on July 23, ahead of spot ETH ETFs due to launch within hours. On-chain data trends provide 3 early signals on what to expect in the days ahead.

Investors have shifted ETH Worth $1B into Exchanges

One of the most significant indicators ahead of the Ethereum ETF launch is the movement of ETH into exchange-hosted wallets. Since the start of July there has been an increase in the number of ETH coins flowing into exchanges. This increased market supply have played a role in Ethereum price stagnation within the $3,400 – $3,580 range over the past week.

Between July 1 and July 22, investors have shifted approximately 300,000 ETH, valued at around $1 billion, onto exchanges.

This movement suggests that many holders are preparing to trade their ETH, likely anticipating increased volatility and trading volume with the ETF launch.

Typically, such a large influx of ETH to exchanges can signal potential sell-offs, but it also provides the liquidity needed for substantial trading activity.

Ethereum Bull Traders Mounted $1.2B LONG Positions

Another critical signal comes from the derivatives market, where traders are showing a bullish stance on ETH. Currently, there are $1.20 billion in leveraged long positions compared to $638 million in short positions.

This skew towards long positions indicates that traders are expecting the price of ETH to rise following the ETF launch. The high level of leverage also suggests that traders are confident in this upward movement, which could drive significant price increases if the ETF launch meets or exceeds market expectations.

The Ethereum 2.0 beacon chain has also attracted staking inflows of 22,000 ETH in the past week

The Ethereum 2.0 beacon chain has seen a notable increase in staking inflows, with 22,000 ETH staked in the past week alone. This influx demonstrates continued confidence in the long-term prospects of Ethereum’s transition to a proof-of-stake network.

Increased staking activity not only reduces the circulating supply of ETH, potentially driving up prices, but also signals strong community support for the network’s future. As Ethereum continues to evolve and scale, this trend could bolster investor confidence and contribute to price stability and growth.

In conclusion, the Ethereum price is poised for significant movement following the ETF launch. The large transfers of ETH to exchanges, the bullish sentiment in the derivatives market, and the ongoing commitment to Ethereum 2.0 staking all provide compelling signals for potential price action in the coming days.

Investors should keep a close eye on these trends as the market reacts to this pivotal event.

Ethereum Price Forecast: $3,400 Support is Vital

The Ethereum ETF launch is expected to trigger an initial sell-the-news correction, which could send ETH price tumbling towards $3,400. However, the 3 on-chain signals analyzed above show that ETH is primed for a more bullish phase in the mid-to-long term.

Firstly, ETH price daily chart on July 23 shows a strong performance with ETH trading at $3,531.38, up 2.66% on the day.

The current price is above the 20-day simple moving average (SMA) of $3,257.60, indicating a bullish trend in the short term. The Bollinger Bands (BB) suggest that volatility is moderate, with the upper band at $3,675.30 and the lower band at $2,839.90.

A key level to watch is the $3,400 support, which is crucial for maintaining the upward momentum. If ETH holds above this support, it can consolidate and potentially target the next resistance at $3,675.30, as indicated by the upper Bollinger Band. A break above this level could see ETH testing the $3,800 psychological resistance.

The Relative Strength Index (RSI) is currently at 59.50, approaching the overbought territory but still in a neutral zone.

This suggests that while the price is in an uptrend, there is still room for further gains before it becomes overextended. However, if the RSI moves above 70, it may signal that ETH is overbought and a correction could follow.