Ethereum Post-ETF Rally Likely to Outshine Solana Gains
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![Why Ethereum Post-ETF Rally Will Likely Overshadow Solana Gains](https://coingape.com/wp-content/uploads/2024/07/Spot-Ethereum-ETF.webp)
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.
![ETH vs. SOL Price Performance](https://coingape.com/wp-content/uploads/2024/07/ETH-VS-BTC-ETF-rally.jpeg)
Read more: Ethereum Client Releases Important Stability Fix Ahead Pectra Upgrade
Two Reasons To Anticipate Ethereum Rally
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, Ethereum price could have already bottomed and could be setting up the stage for a post-ETF rally.
ETH Supply Shortage
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.
![ETH 2.0 Staking Rate (%)](https://coingape.com/wp-content/uploads/2024/07/Ethereum-ETH-2.0-Staking-Rate-Large2.jpeg)
The total ETH held on exchanges has dropped to a five-month low of nearly 17 million. Further exacerbating the reduced supply.
![ETH Exchange Reserve](https://coingape.com/wp-content/uploads/2024/07/Ethereum-Exchange-Reserve-All-Exchanges-Large2.jpeg)
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.
![ETH ETF Flows](https://coingape.com/wp-content/uploads/2024/07/Screenshot-2024-07-30-at-2.37.02 PM.png)
All in all, if Ether’s fundamentals keep getting strong it is unlikely the altcoin will remain capped. In such a case, the Ethereum price forecast 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 Ethereum Post-ETF Rally Likely to Outshine Solana Gains appeared first on CoinGape.
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