Despite barely budging afte spot Ether funds’ debut trading day, the price of ETH could still be set for unprecedented highs this year, according to a crypto market analyst.
“People should expect the unexpected, if the Ethereum community is looking for another reason to put it back in the spotlight, it has all the elements to rally like it has never seen before,” Swyftx lead market analyst Pav Hundal told Cointelegraph.
“Everyone is looking for any good news moment,” he added.
He listed off the large amount of Ether (ETH) currently being staked — meaning it cannot be sold and is tightening supply — along with the recent launch of ETFs as two of the main elements, but also the positive sentiment in the options market.
“It is still more bullish than bearish. The put-call ratio, which is looking at speculators betting for upside, is 0.27, which is very, very bullish,” he pointed out.
Hundal was reluctant to specify an exact price prediction but believes the “nearer-term goal” is for Ether to regain its all-time high, which was set at $4,890 in November 2021.
However, he anticipates that its price “might be choppy” for the next 30 days. At the time of publication, Ether is trading at $3,450, down 1.27% over the past seven days, according to CoinMarketCap data.
Spot Ether ETFs debut on Tuesday saw $106.6 million in net inflows, though the price of Ether barely moved, dropping slightly by 0.42% over the past 24 hours.
“No fireworks for the price of Ether, although the first Ether ETFs got off to a good start today,” markets commentator Holger Zschaepitz wrote in an X post.
Investors appear to have seen the ETFs’ launch as a good time to scoop up Ether.
On July 22, a day before the ETFs began trading, permanent holder addresses inflowed 714,000 ETH, valued at $2.4 billion, an all-time high.
Meanwhile, Hundal says traders might as well “ignore Ethereum’s previous prices” before the Ethereum Merge, as the event gave Ether more robust supply and demand mechanics.
“Ever since deflationary mechanics was introduced, more deflationary elements on the product, a self-governing proof-of-stake, now when the market is busy, less Ethereum is being created,” he explained.