The post ETH Supply Surge Casts Shadow on Spot Ethereum ETF Excitement appeared on BitcoinEthereumNews.com.

We are just three days away from the approval of the spot Ethereum ETF, and the excitement among investors is pretty high. However, rapidly increasing ETH supply over the past two months is one of the major concerns going ahead. ETH Supply Increasing by 60K Per Month Popular market analyst Benjamin Cowen stated that the Ethereum supply has been increasing by 60K per month since April. He added that if this continues to happen until December this year, the ETH supply in circulation will be similar to that before the Merge event back in September 2022. Over the last 30 days, the supply of ETH is up by almost 60,000 ETH. pic.twitter.com/3XuFUjZDPC — Benjamin Cowen (@intocryptoverse) July 19, 2024 In the last three months, the Ethereum supply has surged by 150,000. “Currently, since the merge the supply is -298,000. But that will only take 5 months to revert at this pace,” said Cowen. Cowen added that the major driver for the Ethereum price surge moving ahead would be nothing but the monetary policy. Unless and until the Fed pivots and moves to quantitative easing, Cowen doesn’t expect a major surge in Ethereum going ahead. According to Cowen’s analysis, the ETH/BTC trading pair experienced a false breakdown below its lows in Q2 2016, followed by genuine capitulation in Q4 of the BTC halving year. If the current pattern mirrors 2016, Cowen suggests that the final capitulation for ETH/BTC may not commence until September 2024. This timeline would allow sufficient time for the initial excitement surrounding the spot ETF, relative to BTC, to diminish. “If you follow monetary policy, last cycle ETH/BTC broke support the same month that the Fed cut rates,” said Cowen. Well, reports suggest that the Fed Rate cuts could commence sometime around September this year. Also read: Fed…

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Filed under: News - @ July 20, 2024 3:22 pm