Ethereum Outshines Bitcoin in Recent ETF Surge, Analysts Say

The entire cryptocurrency community has eagerly anticipated the approval of spot Bitcoin ETFs. However, it is important to remember that several institutions have also submitted applications for Ethereum ETFs. The likelihood of acceptance for these Ethereum-based funds is greater because they are based on futures contracts.

According to a recent Bloomberg article, undisclosed sources with knowledge of the matter have stated that the regulatory agency is on the verge of approving applications from around twelve companies. These companies include ProShares, Volatility Shares, Bitwise, and Roundhill.

Moreover, a recent report by K33 placed significant emphasis on the optimistic outlook for Ethereum ETFs receiving approval from the SEC. Senior Analyst Vetle Lunde opined that such an outcome could potentially bolster the price of Ethereum, asserting its attractiveness as an investment opportunity when compared to Bitcoin. Lunde’s perspective highlighted:

Ethereum is currently heavily favored in the market. The ETH/BTC trading pair is near its lowest point within a 2.5-year range, indicating significant potential for relative upside.

Ethereum Implied Volatility: The Stability Conundrum

The current trading level of ETH/BTC at 0.0632 brings back memories of a similar point observed in the late half of 2021. After various fluctuations, Ethereum saw a 74% rally against Bitcoin from its local lows. The ETH/BTC pair has been making efforts to break free from a descending wedge pattern over the past few weeks. Whenever the price nears the converging trendlines, it usually indicates the forthcoming end of the downward movement.

Additionally, the decreasing lows and lower highs indicate a diminishing bearish momentum and a gradual resurgence of bullish activity. As a result, if there is a successful breakout above the upper trendline, it is expected to slow down the rate of decline and potentially trigger a new bullish trend in the ETH market.

Furthermore, it is important to note that Ethereum’s Implied Volatility has consistently remained low recently times. This specific metric evaluates the market’s expectation of future price movements by considering options. However, the current absence of volatility suggests a lack of unanimity among traders at present, with expectations tilting towards the asset’s price maintaining relative stability.

“The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.”