Key Points
- Ethereum (ETH) has a 20% chance of reaching a new all-time high (ATH) by the end of June, according to data from Lyra Options.
- Recent approval of spot Ethereum exchange-traded funds (ETFs) in Hong Kong has boosted the likelihood of cash inflow from mainland China.
The recent approval of spot Ethereum (ETH) ETFs in Hong Kong has increased the possibility of cash influx from mainland China. For the first time since their inception, Hong Kong’s spot Ether ETFs have seen a record high in daily cash inflows.
The current U.S. government, led by President Joe Biden, is rapidly changing its stance on the altcoin industry due to the increased demand for digital assets. Most U.S. politicians running for office later this year have recognized crypto investors as a legitimate voting block.
The Effect on Ethereum’s Price
Nick Forster, the founder of the Lyra decentralized protocol, which is focused on options and spot trading, believes that the possible approval of spot Ether ETFs in the U.S. will impact the market in a similar way to Bitcoin ETFs. Lyra-based options traders have already set Ether call options expiring in June and July above $5k.
Forster stated that the Lyra options markets indicate a 20 percent chance of Ethereum’s price reaching $5,000 by June 28 and a 20 percent chance of it exceeding $5,500 by July 26. This is due to Lyra traders increasing their positions following the ETF speculation.
He also noted that the approval of spot Ether ETFs in the U.S. will bring more volume to the options market as traders navigate the volatile market to avoid forced liquidations. Ethereum’s market cap is currently about a third of Bitcoin’s, before the approval of spot ETFs earlier this year. Therefore, crypto derivatives traders should expect and prepare for increased volatility in the coming weeks.
Why Choose Ether?
Over the years, Ethereum (ETH) has grown to provide liquidity to most of the altcoin industry. At the time of writing, Ethereum is the largest smart contract blockchain with more than $63 billion in total value locked (TVL) and over $80 billion in stablecoins market cap.
Most institutions that aim to tokenize real-world assets have chosen the Ethereum network due to its reliability and widespread adoption. Currently, the Ethereum network has a market cap of around $444 billion, with the price hovering around $3,692.
The recent 20 percent increase in Ethereum’s price against the U.S. dollar has renewed calls for an anticipated altseason. In addition, the struggle of Bitcoin’s price to rally above $72k recently has triggered a cash rotation to the altcoin market.
Some altcoins, led by the frog-themed meme coin Pepe (PEPE), have reached their respective all-time highs amid increased speculation. From a technical standpoint, Bitcoin dominance has suggested a potential reversal, which could speed up the rebound of the ETH/BTC pair and fuel the anticipated altseason.
