Spot Ether Funds Debut

Despite barely budging after the debut trading day of spot Ether funds, the price of ETH could still be set for unprecedented highs this year, according to a crypto market analyst. Swyftx lead market analyst Pav Hundal shared his insights with Cointelegraph.

"People should expect the unexpected. If the Ethereum community is looking for another reason to put it back in the spotlight, it has all the elements to rally like it has never seen before," Hundal stated. "Everyone is looking for any good news moment," he added.

Tightening Supply and Bullish Sentiment

Hundal listed several factors contributing to this potential surge. The large amount of Ether (ETH) currently being staked means it cannot be sold, tightening the supply. The recent launch of ETFs and the positive sentiment in the options market are also significant factors.

"It is still more bullish than bearish. The put-call ratio, which is looking at speculators betting for upside, is 0.27, which is very bullish," he pointed out.

Price Predictions and Current Status

While Hundal was reluctant to specify an exact price prediction, he believes the "nearer-term goal" is for Ether to regain its all-time high, which was set at $4,890 in November 2021.

However, Hundal said he believes the price "might be choppy" for the next 30 days. According to CoinMarketCap data, Ether was trading at $3,450 earlier this Wednesday, July 24th, a 1.27% decline over the past seven days.

ETF Launch and Market Reaction

The debut of spot Ether ETFs on Tuesday saw $106.6 million in net inflows, though the price of Ether barely moved, dropping slightly by 0.42% over the past 24 hours.

"No fireworks for the price of Ether, although the first Ether ETFs got off to a good start today," markets commentator Holger Zschaepitz wrote in an X post.

Investors have seen the ETFs' launch as a good time to scoop up Ether. On July 22, a day before the ETFs began trading, permanent holder addresses inflowed 714,000 ETH, valued at $2.4 billion, an all-time high.

The Ethereum Merge and Deflationary Mechanics

Meanwhile, Hundal suggests traders might as well "ignore Ethereum's previous prices" before the Ethereum Merge, as the event gave Ether more robust supply and demand mechanics.

"Ever since deflationary mechanics were introduced, more deflationary elements on the product, a self-governing proof-of-stake, now when the market is busy, less Ethereum is being created," he explained.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their research before making a decision.