Ethereum’s Price Might Be Stuck in the Mud
A crypto analyst, Roman, is predicting that Ethereum’s price won’t see much growth in the next few months. He believes that Bitcoin will continue to dominate the market, sucking up all the liquidity while altcoins, including Ethereum, remain stagnant.
Waiting for Bitcoin to Peak
Roman expects Ethereum to start rallying only when traders start moving their money away from Bitcoin and into altcoins. This shift is likely to happen when Bitcoin reaches or is close to its peak. He points to 2020 as an example, when Ethereum lagged behind Bitcoin until Bitcoin hit $40,000.
Bitcoin’s Success, Ethereum’s Future
According to Roman, Ethereum’s success hinges on Bitcoin’s performance. He believes that Bitcoin needs to continue breaking new highs for money to flow into Ethereum and other altcoins. He predicts this shift will happen before the end of the year.
Spot Ethereum ETFs: Lower Expectations
The hype surrounding Spot Ethereum ETFs has cooled down since they started trading. Analysts, including Katalin Tischhauser from Sygnum Bank, believe that these funds will see significantly lower inflows compared to Spot Bitcoin ETFs.
Limited Adoption and Liquidity
Tischhauser suggests that Spot Ethereum ETFs might attract only 15% of the inflows seen in Spot Bitcoin ETFs. This is attributed to Ethereum’s lower name recognition and smaller market cap compared to Bitcoin.
Early Outflows, Recent Inflows
Spot Ethereum ETFs have faced significant outflows since their launch, largely due to competition from Grayscale’s Ethereum Trust (ETHE). However, they recently recorded a net inflow of $33.7 million on July 30, indicating a potential shift in sentiment.
The Bottom Line
While Roman believes that Ethereum will eventually rise, he doesn’t expect it to happen anytime soon. He predicts that Bitcoin’s dominance will continue, and Ethereum’s price will remain relatively flat until Bitcoin reaches its peak.
