Ethereum Futures Market Shows Skepticism Over ETH Breaking Above $4,000; Crypto Investors Cautious as ETF Launch Nears

Ether futures show little confidence in Ethereum (ETH) breaking above $4,000 in the near term, despite a recent rally. Strong resistance at $3,500 halted bullish momentum after a 12.5% price increase between July 12 and July 15. The United States Securities and Exchange Commission’s (SEC) approval of two additional spot Ethereum exchange-traded funds (ETFs) on July 18 failed to generate excitement in Ether’s derivatives market.

The SEC gave preliminary approval to three issuers to begin trading spot ETH ETFs on July 23, with a total of eight awaiting final regulatory approval. Bitwise Chief Investment Officer Matt Hougan projects Ether’s price to hit $5,000 by the end of 2024, citing various factors. Despite the positive news, Ethereum’s investors appear cautious, with lack of significant bullishness noted in the derivatives market.

Meanwhile, Ethereum’s onchain data remains strong with DApps volumes on the rise and the network retaining its leadership in total value locked (TVL). However, the broader macroeconomic landscape poses challenges, including inflation concerns and global economic growth uncertainties. With limited signs of investor confidence in Ether breaking above $4,000, the future of ETH remains uncertain despite the impending spot ETFs launch.