Ethereum Price Forecast: As spot Ethereum ETFs trading nears, predictions hint at massive inflows of up to $15 billion. According to a report by Matt Hougan, a Bitwise investment officer the milestone could be achieved in just 18 months.
Meanwhile, the crypto market has been sending mixed signals this week, starting with a sell-off on Monday and an immediate recovery on Tuesday. Ethereum price hovered at $3,376 toward the US session on Wednesday, June 26, and after correcting by 5% in seven days.
Bitcoin had settled above $61,000 following a rebound from $60,000 support. CoinGecko data shows no change in the total market cap which holds at $2.386 trillion.
How Spot Ethereum ETFs Will Achieve $15B Net Inflows
According to Hougan’s analysis, investors are likely to buy Bitcoin and Ethereum ETFs based on their respective market shares.
Currently, Bitcoin accounts for a cumulative market value of 74%, with investors in the United States pumping $56 billion in BTC ETFs since the approval on January 10, 2024.
Bitwise anticipates that US investors will have put $100 billion in Bitcoin ETFs by the end of 2035, as more and more fund managers allocate funds to the digital product.
Hougan argued that “using this $100 billion figure as a reference, spot ether ETPs would need to attract $35 billion in assets to reach parity, a process I expect will take about 18 months.”
It is worth keeping in mind that the existing Grayscale Ethereum Trust is worth $10 billion and awaiting to convert to an ETF. This implies that Ethereum ETFs will need only $25 billion to reach the $35 billion target.
However, this is not likely to be the case considering in Canada, Ethereum ETPs make up between 22 – 23% of the total assets under management (AUM). In other words, Ether ETFs could underperform the total market cap weight.
Therefore, the Bitwise report cuts its estimate to $18 billion in 18 months where $3 billion is allocated to unforeseen market factors, arriving at the $15 billion spot Ethereum ETFs’ outlook.
Ethereum Price Forecast: When Is ETH Likely To Blast To $5,000?
Ethereum price is currently engulfed in uncertainty, the same uncertainty holding many cryptocurrencies including Bitcoin from advancing into the bull market.
Ethereum price forecast price chart | Tradingview
A descending channel on the four-hour chart guides the retreat from May’s peak of $3,972. The major support stands out at $3,300 as highlighted by the black band.
If broken, declines are likely to extend to $3,200 with $3,000 and $2,800 not too far away. The Relative Strength Index (RSI) downtrend reinforces the bearish grip, implying that the sell-off is not over.
On the positive side, the upcoming trading of spot Ethereum ETFs could change market sentiment, encouraging traders to long ETH for a breakout above $4,000.
This Ethereum price prediction reveals should ETF net inflows surge drastically, a rally might break out driving the smart contracts token to reach the $5,000 milestone.
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John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
