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Ethereum's Parabolic Surge: Unveiling the Catalysts

Institutional Crypto Research Written by Experts

👇 1) A massive short squeeze occurred overnight in Ethereum. The funding rate is the highest ever and signals total panic for shorts. This is nuclear winter for everybody who doubted Ethereum. Market-neutral crypto hedge funds are making a killing with these funding rates. Inflows into crypto hedge funds will be high on the agenda for allocators.

👇 2) Cryptocurrencies traded $100+ billion during the last 24 hours. Bitcoin traded $35 billion, Ethereum $44 billion. Tether traded $70 billion. The market cap climbed back to $1.5 trillion.

👇 3) On September 28, Ethereum was priced at $1,788, and our trading model projected a +39.8% upside over the next two months – targeting $2,500. This sounded ambitious, but we followed the stats and the quant models - together with our market structure analysis. Previously, this model had a 90% success rate in generating winners. 4) Ethereum is now +17% higher, and potentially more gains are coming.

👇 4) On Monday, November 6, we identified the bullish breakout in Ethereum as revenue was improving, which signaled a ‘tactical position in play’ for us. After being massively bullish on Bitcoin this year, we suggested it was time for Altcoins – notably Ethereum- to outperform.

👇 5) We called this ‘From Support to Soaring the Reawakening of Ethereum.’ The market structure trigger for us was that Bitcoin’s dominance peaked at 53.4% and started to decline. The Bitcoin momentum was so strong that traders began to look for alternatives – notably Ethereum.

👇 6) Our own Greed & Fear Index of the Ethereum / Bitcoin ratio signaled that crypto was moving away from ‘beta’ where everything is just about one specific topic (like macro liquidity, or the BlackRock Bitcoin ETF), to something more broad-based which we call ‘alpha’ state – ‘indicating that higher beta trades could potentially offer great returns’. Two days later, we warned that markets were about to break out as the macro data was massively supportive - ‘a breakout looms’ - as we wrote it.

👇 7) Some people still appear skeptical about approving a Bitcoin ETF, but based on our calculations, the probability is 86%, with the market pricing signaling that the approval is coming soon. But most people don’t realize that ONCE the ETF is approved, there will be several weeks before it starts trading, and this window will ONLY SEE BUYERS front running the launch. This could be the biggest squeeze – as we wrote here.

👇 8) Based on our money flow analysis and potential inflows into an ETF – which we proxy by analyzing Tether’s change in market capitalization and the impact on Bitcoin, we estimated that a BlackRock Bitcoin ETF could lift prices by +48%. While this sounded ambitious, the recent price action supports this analysis.

👇 9) Nevertheless, on Monday, November 6, we thought we would see a massive rally in Ethereum, and last night’s +12% performance was – once again – textbook trading calls for us.

👇 10) BlackRock registered an Ethereum Trust in Delaware, signaling their intention to launch a BlackRock Ethereum ETF. A few hours later, BlackRock filed a spot Ethereum ETF with Nasdaq.