Pseudonymous trader and analyst Roman has made a bold prediction regarding ETH Pricesuggesting that investors should lower their short-term expectations. This comes amid a decline in hype around the Ethereum ETFs under the microscopethese funds are currently experiencing significant capital outflows.
What to expect from ETH price
Novel mentioned in a interview with Hall of Flame that he doesn’t see Ethereum “doing as well” in the coming months. The analyst believes that ETH will suffer a similar fate to the rest of the cryptocurrency market, such as Bitcoin absorbs all liquidity while altcoins continue to move sideways because of this.
Related Readings
As such, Roman does not expect the price of ETH to see a parabolic rise until traders begin to pivot their capital from Bitcoin to altcoins, with Ethereum likely to lead the pack when that time comes. The analyst also noted that this period will likely come when traders believe Bitcoin is at or near its market top.
The analyst highlighted the period in 2020 when Ethereum “didn’t really do well” until Flagship Cryptocurrency Hits $40,000He noted that ETH price is down 80% from its all-time high (ATH) while Bitcoin has broken ATHs. Indeed, Ethereum is currently suffering a similar fate. Bitcoin hit a new ATH earlier this year, while ETH is down over 33% from its current ATH of $4,890.
Meanwhile, Roman explained how Ethereum will rise from the ashes when Bitcoin is near or already at its peak. He said that when Bitcoin starts to experience a significant price correction, after reaching a price target of around $120,000Bitcoin traders take profits and turn them into Ethereum and other altcoins.
Interestingly, the crypto trader suggested that Ethereum’s success largely depends on Bitcoin. He claimed that the flagship cryptocurrency needs to continue to reach new highs and climb much higher for money to flow into ETH and other altcoins. In the meantime, Roman believes that the liquidity shift will happen before the end of the year.
How much money could be invested in Ethereum Spot ETFs
Expectations for Ethereum Spot ETFs have fallen since they started trading on July 23, with analysts such as Katalin Tischhauser, director of research at Sygnum Bank, suggesting that entries Investments in these funds may be lower than expected.
Tischhauser said The block that Spot Ethereum ETFs could see up to 15% of Bitcoin flows, with around $5 flowing into these funds in their first year of trading while $30 billion will flow into the Spot Bitcoin ETFs.
Related Readings
The analyst made this prediction based on “Ethereum’s lower awareness” and ETH’s market cap relative to Bitcoin, suggesting that Ethereum ETFs under the microscope will likely see lower adoption and lower liquidity.
These Spot Ethereum ETFs have suffered significant net outflows since they began trading thanks to Grayscale Ethereum Trust (ETHE). However, these funds ended this sequence of net outflows on July 30, with data from Farside Investors showing that they recorded a net inflow of $33.7 million.
Featured image created with Dall.E, chart by Tradingview.com
