Institutional interest and ETF filings by Fidelity and BlackRock drive scarcity, signaling potential price surge.
Ethereum has seen its supply on exchanges hit an 8-year low. Currently, only 10% of Ethereum's circulating supply is available on centralized exchanges. This scarcity is a significant indicator that the price of Ethereum might surge in the near future.
One of the main drivers behind this potential price increase is the growing interest from institutional investors. Major financial companies like Fidelity and BlackRock have filed for Ethereum ETFs (Exchange-Traded Funds). These ETFs are speculated to launch around July 15, which could further boost Ethereum's demand.
ETFs allow investors to gain exposure to Ethereum without actually holding the cryptocurrency, making it easier for both institutional and retail investors to invest. This increased accessibility is expected to attract a significant amount of new investment into Ethereum.
Another factor contributing to Ethereum's favorable outlook is the lack of sell pressure from miners. Unlike Bitcoin, where miners frequently sell their mined coins to cover operational costs, Ethereum has transitioned to a proof-of-stake model. This means that there is no constant sell pressure from miners, making Ethereum's price more stable and poised for appreciation.
As of now, Ethereum is trading at $3,137.65. While the price has shown some volatility, it has maintained an upward trend. The combination of reduced supply on exchanges, growing institutional interest, and the absence of miner sell pressure creates a perfect storm for a significant price increase.
