The second-largest crypto by market cap, Ethereum is eyeing a rally above the $3,400 level as the recently approved ETH ETF nears its official launch. Over the last 30 days, it has dropped more than 9%, according to CoinMarketCap. Yet, there are metrics that support an incoming price surge.
The last 24 hours have seen the token increase almost 2%. Currently trading above $3,100, there are still investors disappointed in the asset’s performance. In the first week of July, more than $310 million in leveraged long positions were liquidated, with ETH falling more than 18% in that time. There is still hope, as a turnaround is increasingly likely.
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ETH to $3,400? ETF Hype and Favorable Data Could Drive Rally
Earlier this month, VanEck, Fidelity, and other Spot Ethereum ETF issuers filed amended S-1 forms with the SEC. That brought the product one step closer to launch. Moreover, experts are now predicting the investment vehicle will begin trading within the next two weeks.
That could be massive for ETH. Indeed, Ethereum is currently eyeing a rally above the $3,400 mark as the ETF launch nears. Bitwise chief investment officer, Matt Hougan recently predicted the product to gain $15 billion in inflows in its first 18 months of existence.
The price increase of Ether doesn’t depend on that fact though. Crypto analysts like Leon Waidmann predict that the asset’s price will surge due to how much of its supply is locked in booth staking and dApps. Waidman took to X (formerly Twitter) to share that 40% of the asset’s supply is currently locked.
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The supply on exchanges has also fallen this month Glassnode data shows that exchange deposits fell to 12.21 million ETH. Just two months ago, that figure was more than 13 million Ether. The drop in available coins could lead to increased selling in the short term.
Ethereum’s ecosystem boasts on-chain and derivatives data that indicates a bullish direction for the token. Additionally, the short-term looks to support the $3,400 resistance level for the asset. Even if the ETF debut is set to take some time, the anticipation of it could provide the crypto with growing interest and momentum.