Ether Could See Price Correction After Dencun Upgrade, QCP Capital Says
Ether (ETH) prices may experience a correction, according to Singapore-based digital assets trading firm QCP Capital. Despite ETH surpassing $4,000, its highest price in two years, QCP Capital has observed a shift in market sentiment, marked by negative risk reversals, likely due to the low probability of a spot ether ETF being approved soon. Network upgrades like Bitcoin’s Taproot and the Ethereum merge typically have minimal impact on pricing under bearish and sideways market conditions. However, current market dynamics could influence Ethereum and its Layer 2s prices. A Polymarket prediction market contract gives a 31% chance of an ether ETF being approved by May 31. Market data shows a rise in demand for ether put options as traders prepare for short-term weakness. QCP Capital is concerned about the amount of leverage in the market but believes traders will quickly buy back any dips. Ether has outperformed the CoinDesk 20, gaining 54% in the last month versus the CD20’s 50% rise.
