Like Bitcoin and major altcoins including Solana, Ethereum is holding steady. At the time of writing, it is trading above local support at $3,300 and floating higher, targeting $3,700.
Speculators flock to ETH as bulls target $3,700
The rally is fueled by multiple market factors, primarily the planned launch of Ethereum spot ETFs in the coming days. As seen on the daily chart, the announcement of the acceleration of the approval of Form 19b-4 by the U.S. Securities and Exchange Commission (SEC) triggered a wave of demand starting on May 20.
However, speculators are taking over the scene even as prices remain stable and rising. Data from CryptoQuant shows that the estimated debt ratio has increased over the past few trading days.
With this bullish reading, the ETH scene is receiving more leveraged traders eager to profit from price volatility rather than benefit from what ETH presents as a digital asset.
According to CryptoQuantThe estimated debt ratio stood at 0.347 on July 16 before rising to 0.354 on July 17. This expansion suggests that traders are increasingly borrowing funds on perpetual trading platforms like Binance and OKX, hoping to make a fortune if ETH bulls push prices above $3,700.
As prices rise, the estimated debt ratio is expected to rise further. The local high is 0.358, recorded on July 14. The historical debt ratio was 0.392, recorded in early July 2024.
Ethereum ETFs in Focus: Will It Be a Success?
Ethereum traders are confident that prices will surge, even to all-time highs, once the ETH spot ETF is launched. Latest reports show that the derivative product will launch early next week, allowing institutional investors to gain exposure.
The US SEC has given the green light to three issuers to launch their business. However, it is expected that all Ethereum spot ETF applicants whose Form 19b-4s have been approved will be allowed to launch simultaneously.
Confidence is high that spot Ethereum ETFs will follow the success of their spot Bitcoin ETFs. SosoValueAll Bitcoin spot ETF issuers manage over $53 billion worth of BTC as of July 18.
However, while highly anticipated and likely to have a positive impact on prices, the product will see a different level of demand than that seen when spot Bitcoin ETFs were launched.
Analysts attribute this to Ethereum’s low market cap and the US SEC’s decision not to allow cash ETF issuers to ETH stakingBy staking, issuers would receive rewards on behalf of their customers.
Main image from Canva, chart from TradingView
