Crypto trader Degentrading made a case for why Ethereum ETH/USD could reach $6,000 by September 2024, diving into market dynamics and ETF impacts.
What Happened: Degentrading criticized Bloomberg ETF analyst Eric Balchunas for being out of touch with market sentiment, saying traditional finance players are more excited about tech assets like Ethereum compared to Bitcoin BTC/USD which is often seen as "digital gold."
Degentrading builds on a framework initially set by Andrew Kang to estimate the potential inflow amount for the Ethereum ETF. He sees $7 billion as a realistic numbers, based on technical factors like the extinction of major prime brokers like Genesis.
Also Read: Why Bitcoin, Ethereum Will Be Climbing A ‘Wall Of Worry’ In The Coming Weeks
Why It Matters: With generally low expectations in the crypto community ahead of the Ethereum ETF launch, Degentrading sees this as an ideal technical setup for ETH.
The trader believes Ethereum's inflow conversion rate could be half of Bitcoin's and highlights ETH’s lower liquidity compared to BTC, arguing that such inflows would significantly impact ETH’s price due to its relatively illiquid market.
"On the cusp of ETH ETF, you have people setting expectations for $500 million of inflows over 6 months. The overall mood in CT is bleak. This is the best technical setup for ETH," he explains.
Degentrading wraps up by stating his confidence in Ethereum's potential rise to $6,000 amid the ETF launch.
What’s Next: The influence of Ethereum as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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