The post ETH Price Could Crash Despite Spot Ethereum ETFs Euphoria, Analyst Explains Why appeared on BitcoinEthereumNews.com.

With the Spot Ethereum ETFs expected to begin trading on Tuesday, July 23, expectations for the ETH price have shot up drastically. Numerous analysts and market experts have come forward to predict that it would be a great development for the ETH price, pushing it to new all-time highs. However, one analyst has warned investors to exercise caution during this time as the Spot Ethereum ETFs going live may not have the expected effect immediately. Why The Spot Ethereum ETFs May Lead To A Decline While the Spot Ethereum ETFs going live for trading have been well-received by the crypto community, crypto expert Benjamin Cohen has pointed out another alarming development that could send the ETH price crashing. This time, it is the ETH supply increasing rapidly. In the X (formerly Twitter) post, Cohen points out that the ETH supply had turned inflationary once again. For reference, the Ethereum Merge previously made the ETH supply deflationary, with burns from transactions sending hundreds of thousands of ETH to the dead wallet. However, recently, with activity falling to new lows on the Ethereum network, the supply has turned inflationary as there isn’t enough transaction fees being burned to outpace new supply. More specifically, the crypto expert revealed that the supply had gone up by 60,000 ETH in just one month. Now, if the supply continues to increase at this rate, Cohen explains that it will take only until December for the supply to get back to where it was before the Merge was completed. Unless there is a reversal and the supply turns deflationary once again, this new supply could undermine the inflows from Spot Ethereum ETFs and push the ETH price down instead. Spot ETH ETFs Trading Draws Closer Last week, the Chicago Board Options Exchange (CBOE) announced that a total…

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Filed under: News - @ July 23, 2024 6:22 am