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>
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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

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