Pseudonymous trader and analyst Roman has made a bold prediction regarding the Ethereum Pricesuggesting that investors should scale back their near-term expectations. This comes amid a decline in enthusiasm around the Ethereum ETFs in Spotlightthese funds are currently experiencing significant outflows.
What to expect from the price of ETH
Roman mentioned during a interview with Hall of Flame that he doesn’t see Ethereum “doing so well” in the coming months. The analyst believes that ETH will suffer a similar fate to the rest of the crypto market like Bitcoin. sucks up all the liquidity while altcoins continue to trade sideways due to this.
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As such, Roman does not expect the price of ETH to enjoy any parabolic rally until traders start shifting their capital from Bitcoin to altcoins, such as Ethereum. will probably lead the group when that time comes. The analyst also noted that this period will likely come when traders think Bitcoin is at or near its current level. top of the market.
The analyst highlighted the period in 2020 where Ethereum “didn’t really do well” until the Major crypto hit $40,000. He noted that the price of ETH has fallen 80% from its all-time high (ATH), while Bitcoin has broken ATHs. In fact, Ethereum is currently suffering a similar fate. Bitcoin hit a new ATH earlier this year, while ETH has fallen 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 stated that when Bitcoin starts to undergo a significant price correction after reaching a target price around $120,000Bitcoin traders are taking profits and transferring them to Ethereum and other altcoins.
Interestingly, the crypto trader suggested that Ethereum’s success largely depends on Bitcoin. He stated that the flagship crypto needs to continue breaking new highs and rally much higher for money to flow into ETH and other altcoins. However, Roman believes that the liquidity shift will happen before the end of the year.
How Much Could Flow into Spot Ethereum ETFs
Expectations for Spot Ethereum ETFs have fallen since they started to negotiate on July 23, with analysts including Katalin Tischhauser, head of research at Sygnum Bank, suggesting that Appetizer in these funds may be lower than expected.
Tischhauser counted The blockbuster Spot Ethereum ETFs could witness as low as 15% of Bitcoin flows, with around $5 billion flowing into these funds in their first year of trading, while $30 billion flows into the Spot Bitcoin ETFs.
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The analyst made this prediction based on Ethereum’s “lower name recognition” and ETH’s market cap compared to Bitcoin’s, suggesting that Ethereum ETFs in Spotlight will likely see less adoption and lower liquidity.
These Spot Ethereum ETFs have experienced significant net outflows since they began trading thanks to Grayscale Ethereum Trust (ETHE). However, these funds broke this streak of net outflows on July 30, with data from Farside Investors showing that they recorded a net inflow of US$33.7 million.
Featured image created with Dall.E, chart from Tradingview.com