- As per experts and crypto trading platforms, the ETH buy calls by hedge funds have increased considerably over the last few days.
- Ether fans have once again ignited the debate of Ethereum flippening Bitcoin in the future.
The world’s second-largest cryptocurrency Ethereum (ETH) has had a solid run-up over the last two weeks moving past $1,700. The recent ETH price rally has excited a large number of retail players looking to build fresh positions.
Crypto experts and investor Raoul Pal has given some price predictions for ETH. He expects the ETH price to rally to $2,000 and above as more retail investors, institutional players, and hedge funds participate. He added that all three players are currently underweight in the market owing to the macro environment. Pal added:
The general feeling is that the macro is so bad that there needs to be a new low or a re-test of the low. But my hunch is that the path of MAX PAIN is higher. Hedge funds are scrambling to buy calls just in case ETH breaks 1800 to 2000. They can not afford Not to participate.
Crypto trading platform QCP noted that they traded an “incredible amount” of Ether call options over the last few days. QCP noted that hedge funds have been large buyers. “We expect this demand to continue as we approach the merge in September,” they wrote.
Furthermore, the crypto expert is bullish that Ethereum will outperform Bitcoin and other altcoins. This is mainly because of the optimism surrounding The Merge and the rise in network activities.
He further noted that beyond $2,000, the retail and institutional FOMO will kick in at around $2200-$2300. However, he adds a warning that;
Once everyone has got back in, the market can correct sharply before rising again based on the macro.
Ethereum (ETH) flippening Bitcoin (BTC)
In the last two weeks of July, Ethereum (ETH) made sharp gains of more than 60 percent from its monthly lows. During this period of pullback, ETH once again outclassed BTC which gained around 20 percent.
This has once again ignited the debate on Ethereum surpassing Bitcoin to become the largest cryptocurrency by market valuations. However, ETH is still less than 50 percent of the total valuations that Bitcoin commands. Still, many analysts believe that Ethereum flippening Bitcoin is very much possible. Quantum Economics Founder and Chief Executive Officer Mati Greenspan wrote:
I keep hearing people repeating the question, ‘wen flippening?’ Even though there’s no guarantee this will ever happen, just looking at the numbers, it does seem like this event is getting closer by the day.
Bodhi Pinkner, an analyst at crypto asset manager Arca told Bloomberg:
The flippening “is very possible”. We have a favorable view of Ethereum,” he said, adding that it will, following the Merge, become a deflationary asset. “So that changing dynamic bodes theoretically well for Ethereum’s price relative to Bitcoin, especially in an environment of tightening.”
The chances that ETH will surpass BTC by the next big bull run are still less. However, it continues to close the valuation gap with Bitcoin.