The latest crypto derivatives analysis report from Bybit in partnership with BlockScholes shows that there has been a significant shift in market sentiment, with investors now favoring Ethereum (ETH).
The analysis shows that, compared to Bitcoin (BTC), there is a Growing optimism around ETH due to important market indicators and impending regulatory changes.
Source: Bybit Analytics
Strong bullish indications despite market volatility
The upcoming launch of Ether Spot ETFs in the US is expected to give the world’s leading altcoin a major boost in terms of adoption and possibly price projection.
Ethereum futures outpace BTC recover open interest, indicating a strong market narrative supporting Ethereum’s long-term outlook.
Source: Bybit Analytics
The increase in ETH perpetual contract trading volumes indicates that investors are taking calculated risks to anticipate expected market turns, such as the introduction of an ETF.
Increased price dynamics and options activity
ETH options market volatility remains high, especially as ETF approvals are awaited. This is in stark contrast to BTC options, which are showing a more cautious approach.
The study reveals a stable premium in ETH options volatility across a range of term structure duration points, indicating strong market expectations for upcoming price movements.
In the previous 24 hours, Ethereum price has increased by 4% to $3,472. A handful of spot ETH ETFs are set to launch on July 23 after receiving preliminary clearance from the U.S. Securities and Exchange Commission.
Experts predict that these legislative advances would lead to significant financial inflows into Ethereum, which could push its price up to $4,000 and beyond.
ETH market cap currently at $408 billion. Chart: TradingView.com
A look at Ethereum prices
Over the past few days, the price of Ethereum has seen a significant change. During the period when the market as a whole was experiencing a decline, the price of ETH fell to $2,811, but since Bitcoin started to rise again, ETH has followed suit.
Ethereum’s development reached its conclusion at $3,484 after producing a “double bottom” on the 4-hour chart earlier.
ETH up in the last 24 hours. Source: Coingecko
With $3,570 and $3,800 as likely resistance levels, Ethereum price prediction points to further upward movement ahead. If the bears prevail, Ethereum can find support at $3,350, in line with the 21-day and 50-day simple moving averages (SMAs).
ETF introduction attracts investor interest
The SEC has given preliminary approval to three issuers, boosting momentum in the Ethereum market ahead of the planned launch of ETH Spot ETFs. Bloomberg ETF expert Eric Balchunas predicts strong trading volumes and institutional interest when markets open Tuesday.
According to Eugene Cheung, Head of Institutions at Bybit, the Ethereum price rally can be attributed to investor optimism regarding the ETF certification. Higher expectations for liquidity and institutional involvement are helping to position the market favorably.
Featured image from Techopedia, chart from TradingView
