Ethereum

Rally

ETH 2.0

Gains

Ethereum price has crashed by 12% since the spot ETF approval on July 23. Solana, popularly termed an ‘Ethereum competitor,’ is up only 1.55%. With the recent developments, if SOL does not step up its game, ETH will likely outperform it.
<figure id="attachment_210145" aria-describedby="caption-attachment-210145" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-210145" src="https://coingape.com/wp-content/uploads/2024/07/ETH-VS-BTC-ETF-rally.jpeg" alt="ETH vs. SOL Price Performance" width="1280" height="688" srcset="https://coingape.com/wp-content/uploads/2024/07/ETH-VS-BTC-ETF-rally.jpeg 1280w, https://coingape.com/wp-content/uploads/2024/07/ETH-VS-BTC-ETF-rally-300x161.jpeg 300w, https://coingape.com/wp-content/uploads/2024/07/ETH-VS-BTC-ETF-rally-1224x658.jpeg 1224w, https://coingape.com/wp-content/uploads/2024/07/ETH-VS-BTC-ETF-rally-768x413.jpeg 768w, https://coingape.com/wp-content/uploads/2024/07/ETH-VS-BTC-ETF-rally-150x81.jpeg 150w" sizes="(max-width: 1280px) 100vw, 1280px">
 <figcaption id="caption-attachment-210145" class="wp-caption-text">
 ETH vs. SOL Price Performance
 </figcaption>
</figure>
Read more: <a href="https://coingape.com/ethereum-client-releases-important-stability-fix-ahead-pectra-upgrade/" rel="noopener noreferrer nofollow">Ethereum Client Releases Important Stability Fix Ahead Pectra Upgrade</a>
<h2 id="strong-two-reasons-to-anticipate-ethereum-rally-strong">Two Reasons To Anticipate Ethereum Rally</h2>
As explained in the previous Ethereum post, Ether prices closely follow Bitcoin’s post-ETF footsteps. However, the rate of change for ETH is much higher. Where Bitcoin price crashed 21% in 12 days, Ether price crashed nearly 13% in just three days.
After the ETF launch, Bitcoin and Ethereum faced outflow pressure from their respective Grayscale products. However, with ETH, 10% of the Grayscale Ethereum Trust (ETHE) will be converted toward mini-spot Ethereum ETF purposes, thereby alleviating a massive source of selling pressure.
Therefore, if the outlook for Bitcoin remains the same, <a href="https://coingape.com/price/ethereum/" rel="noopener noreferrer nofollow">Ethereum price</a> could have already bottomed and could be setting up the stage for a post-ETF rally.
<h3 id="strong-eth-supply-shortage-strong">ETH Supply Shortage</h3>
The ETH staking rate, the total ETH 2.0 staling balance divided by the total Ethereum supply, has hit an all-time high (ATH) of 28.1%. This metric paints a wildly bullish outlook for ETH investors.
<figure id="attachment_210146" aria-describedby="caption-attachment-210146" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-210146" src="https://coingape.com/wp-content/uploads/2024/07/Ethereum-ETH-2.0-Staking-Rate-Large2.jpeg" alt="ETH 2.0 Staking Rate (%)" width="1280" height="720" srcset="https://coingape.com/wp-content/uploads/2024/07/Ethereum-ETH-2.0-Staking-Rate-Large2.jpeg 1280w, https://coingape.com/wp-content/uploads/2024/07/Ethereum-ETH-2.0-Staking-Rate-Large2-300x169.jpeg 300w, https://coingape.com/wp-content/uploads/2024/07/Ethereum-ETH-2.0-Staking-Rate-Large2-1224x689.jpeg 1224w, https://coingape.com/wp-content/uploads/2024/07/Ethereum-ETH-2.0-Staking-Rate-Large2-768x432.jpeg 768w, https://coingape.com/wp-content/uploads/2024/07/Ethereum-ETH-2.0-Staking-Rate-Large2-678x381.jpeg 678w, https://coingape.com/wp-content/uploads/2024/07/Ethereum-ETH-2.0-Staking-Rate-Large2-150x84.jpeg 150w" sizes="(max-width: 1280px) 100vw, 1280px">
 <figcaption id="caption-attachment-210146" class="wp-caption-text">
 ETH 2.0 Staking Rate (%)
 </figcaption>
</figure>
The total ETH held on exchanges has dropped to a five-month low of nearly 17 million. Further exacerbating the reduced supply.
<figure id="attachment_210147" aria-describedby="caption-attachment-210147" style="width: 100%" class="wp-caption alignnone"><img decoding="async" class="wp-image-210147 size-full" src="https://coingape.com/wp-content/uploads/2024/07/Ethereum-Exchange-Reserve-All-Exchanges-Large2.jpeg" alt="ETH Exchange Reserve" width="1280" height="720" srcset="https://coingape.com/wp-content/uploads/2024/07/Ethereum-Exchange-Reserve-All-Exchanges-Large2.jpeg 1280w, https://coingape.com/wp-content/uploads/2024/07/Ethereum-Exchange-Reserve-All-Exchanges-Large2-300x169.jpeg 300w, https://coingape.com/wp-content/uploads/2024/07/Ethereum-Exchange-Reserve-All-Exchanges-Large2-1224x689.jpeg 1224w, https://coingape.com/wp-content/uploads/2024/07/Ethereum-Exchange-Reserve-All-Exchanges-Large2-768x432.jpeg 768w, https://coingape.com/wp-content/uploads/2024/07/Ethereum-Exchange-Reserve-All-Exchanges-Large2-678x381.jpeg 678w, https://coingape.com/wp-content/uploads/2024/07/Ethereum-Exchange-Reserve-All-Exchanges-Large2-150x84.jpeg 150w" sizes="(max-width: 1280px) 100vw, 1280px">
 <figcaption id="caption-attachment-210147" class="wp-caption-text">
 ETH Exchange Reserve
 </figcaption>
</figure>
As mentioned earlier, Grayscale’s outflows currently dominate; hence, the cumulative net flows as of July 29 stand at $439.64 million. But as the outflows cool down and inflows start to pick up, the reduced supply of ETH will likely have a sudden positive impact on Ether price and potentially kickstart an explosive rally.
<figure id="attachment_210141" aria-describedby="caption-attachment-210141" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-210141" src="https://coingape.com/wp-content/uploads/2024/07/Screenshot-2024-07-30-at-2.37.02 PM.png" alt="ETH ETF Flows" width="2460" height="1120" srcset="https://coingape.com/wp-content/uploads/2024/07/Screenshot-2024-07-30-at-2.37.02 PM.png 2460w, https://coingape.com/wp-content/uploads/2024/07/Screenshot-2024-07-30-at-2.37.02 PM-300x137.png 300w, https://coingape.com/wp-content/uploads/2024/07/Screenshot-2024-07-30-at-2.37.02 PM-1224x557.png 1224w, https://coingape.com/wp-content/uploads/2024/07/Screenshot-2024-07-30-at-2.37.02 PM-768x350.png 768w, https://coingape.com/wp-content/uploads/2024/07/Screenshot-2024-07-30-at-2.37.02 PM-1536x699.png 1536w, https://coingape.com/wp-content/uploads/2024/07/Screenshot-2024-07-30-at-2.37.02 PM-2048x932.png 2048w, https://coingape.com/wp-content/uploads/2024/07/Screenshot-2024-07-30-at-2.37.02 PM-150x68.png 150w" sizes="(max-width: 2460px) 100vw, 2460px">
 <figcaption id="caption-attachment-210141" class="wp-caption-text">
 ETH ETF Flows
 </figcaption>
</figure>
All in all, if Ether’s fundamentals keep getting strong it is unlikely the altcoin will remain capped. In such a case, the <a href="https://coingape.com/price-predictions/ethereum-eth-price-prediction/" rel="noopener noreferrer nofollow">Ethereum price forecast</a> hints at a revisit of the $4,000 psychological level. Beyond this level, ETH could overcome the current ATH of $4,878 and tag the $5,000 level.
The post <a href="https://coingape.com/markets/ethereum-post-etf-rally-likely-to-outshine-solana-gains/" rel="noopener noreferrer nofollow">Ethereum Post-ETF Rally Likely to Outshine Solana Gains</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Ethereum Post-ETF Rally Likely to Outshine Solana Gains

Table of Contents

Coingape News Media

Other articles published on Jul 30, 2024

BlackRock Issues Urgent Warning Over Rising Crypto Scams Targeting ETF Investors

XEC Price Prediction: Breakout Rally in XEC Network Eyes $8

Politicians and Investors Advocate for US Bitcoin Reserve

HashKey Global Introduces New Perpetual Futures Contracts for Solana, Dogecoin, and Avalanche

Bitcoin Whale Accumulates 4,500 BTC from Binance Anticipating Higher Prices Ahead

Cryptocurrency Kaspa Up More Than 3% In 24 hours

Join our free newsletter for daily crypto updates!