Balance on Exchange Drop Ahead of Spot Ethereum ETF Launch!

Bitcoin plunged by nearly 17% after the very first ETF was approved and went live in January. Further, the token soared by over 85% to mark a new ATH at $73,750 in the next 45 days. Ethereum, the second-largest token, has been following the BTC price rally closely and hence a similar pattern is expected to be witnessed after the upcoming ETF launch. The markets have turned optimistic as they believe the ETH price to follow the star token and form a new ATH in the coming weeks

Ethereum spot ETF is set to go live on July 23, 2024, on the Chicago Board Options Exchange (CBOE), which includes VanEck, Invesco, Fidelity, 21Shares, & Franklin Templeton. With this, the market participants seem to have become sure of the second-largest token to reach new highs, as the balance on the exchanges has been consistently dropping after plunging heavily in the last few days of June. 

Balance on the exchange displays the mood of the market participants. If they are bearish on a token, they transfer their assets from the cold wallets to the exchanges, intending to sell or swap. However, the current set-up shows the traders are more confident about the upcoming price rally and as a result, they have been constantly moving their ETH out of the exchange. This growing optimism within the markets may eventually elevate the price levels beyond the interim milestone at $4000 and after the ETF goes live, a new ATH is imminent. However, the ETH price rally is not expected to halt after rising above $5000, as the real target lies around $20,000. 

According to a popular analyst, Ririn, the Ethereum price rally is on track to surpass the $20,000 milestone in the upcoming bullish action. The growing market sentiments have offered a strong base for the ETH price rally, which has held the price largely above $3000. Now that the ETH price is just 25% away from its ATH, a fresh upswing may elevate the levels beyond the speculated range.