This text discusses the potential impact of the approval of Ethereum Exchange-Traded Funds (ETFs) on ETH prices. The author mentions that the initial excitement following the approval of 19b-4 files led to a substantial rally in ETH prices, but was followed by a price decline as investors awaited the approval of S-1 files.
Could the approval of the Ethereum-linked Ether ETF be the catalyst that ends Ethereum’s price plateau and initiates a substantial price surge? Let’s delve into the potential implications.
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As a crypto investor, I’m constantly keeping an eye on Ethereum (ETH) price movements. The buzz in the community is palpable with the rumors swirling around about a possible launch of a spot Ethereum exchange-traded fund (ETF) next month. This potential development has fueled my own speculation and excitement, as I believe it could significantly impact the Ethereum market.
In the midst of cryptocurrency markets’ recent instability, Ethereum (ETH) has witnessed a decrease, dropping more than 4% within the last seven days and currently priced around $3,500 on June 17.
The decrease in Ethereum’s value follows a wider pattern as Bitcoin (BTC) and other alternative coins find it challenging to sustain their bullish trends, leading to recent price drops.
As a crypto investor, I’ve noticed an intriguing development in the market over the last month. While Bitcoin (BTC) has dipped by more than 2%, now hovering around the $65-66k range, Ethereum (ETH) has shown impressive growth, rising by over 12% within the same timeframe.
On May 23rd, the SEC gave its approval for eight 19b-4 filings that aim to list spot Ethereum Exchange Traded Funds (ETFs) on different US exchanges. Nevertheless, trading won’t begin until the necessary S-1 registration statement approvals are granted, which has contributed positively to Ethereum’s price trend.
Recently, Eric Balchunas, an analyst at Bloomberg ETF, hinted that spot Ethereum Exchange-Traded Funds (ETFs) might start trading by July 2nd in the latest development.
As an analyst, I have new information to share regarding the anticipated launch date of the spot Ether Exchange-Traded Fund (ETF). Based on recent developments, we are now looking at an updated timeline, which moves up the over/under date to July 2nd. Today, we received word that the Securities and Exchange Commission (SEC) staff has reviewed and provided comments on some of the ETF issuers’ S-1 filings. These comments appeared to be relatively light, with no major concerns raised. The SEC is requesting that the issuers respond to these comments within a week. Given this positive indication, there is a good chance that the SEC will declare these filings effective shortly after receiving and addressing any remaining issues.
— Eric Balchunas (@EricBalchunas) June 14, 2024
Balchunas reported on X (previously known as Twitter) that the SEC staff feedback on Ethereum ETF applicants’ S-1 filings was relatively minor and unremarkable. The applicants were instructed to re-submit their applications within a week.
Based on the existing data, Balchunas finds this sequence of events to be a realistic possibility, although other outcomes are also feasible.
On June 13, SEC Chair Gary Gensler gave a more expansive estimate, implying that exchange-traded funds (ETFs) backed by Ether could become available for trading as early as the end of September, assuming regulatory comments are addressed in a timely manner.
Amidst the varied responses, let’s explore current developments with ETH pricing and decipher the market sentiment shaping Ethereum price forecasts.
Whale activity and TVL data
With an Ethereum-backed ETF becoming increasingly likely, large investors or “whales” are taking actions that could significantly impact current market trends.
Over the past three weeks, I’ve noticed an intriguing development in the Ethereum market. According to a tweet by ali_charts on June 16, large Ethereum investors, or “whales,” have scooped up over 700,000 ETH. This substantial purchase translates to around $2.45 billion in today’s market value.
A crypto expert shared on Twitter that there’s been a roughly 3% growth in the past month among Ethereum wallets containing over 10,000 Ether.
From a broader viewpoint, according to Dune Analytics, the leading 1,000 Ethereum (ETH) owners account for approximately 38.93% of the entire ETH supply. Among this group, the top 100 individuals hold around 21.34%, and the top 500 individuals collectively manage nearly 33.86%.
In the midst of heightened whale activity, Ethereum’s dominance in the crypto market remains robust, accounting for over 61% of the total TVL (Total Value Locked). As of June 17, Ethereum’s TVL amounts to $62.186 billion, marking a significant leap from the $30 billion mark at the beginning of the year.
As a crypto investor, I’m excited to see Lido, Ethereum’s liquid staking solution, taking the front row seat with a remarkable 14% growth in Total Value Locked (TVL) over the past month, now standing at an impressive $33.64 billion.
The Ethereum staking platform Eigenlayer is rapidly gaining ground, experiencing a significant surge of 25%, bringing its total value locked to over $19 billion.
The significance of these whale actions and substantial Total Value Locked (TVL) numbers is considerable. Should the Ethereum-backed spot ETF receive approval, an influx of both retail and institutional investments is likely, resulting in increased pricing and TVL elevations.
Currently, the whales’ behavior indicates they are preparing for a potential increase in the price of Ethereum ETFs, as they believe that these financial products may become available shortly.
What do the experts think?
Michael van de Poppe, a renowned cryptocurrency analyst, brought up the anticipated debut of a Spot Ethereum Exchange-Traded Fund (ETF) as a significant market occurrence.
The approval of the 19b-4 files caused ETH prices to soar, reaching a peak of $3,800 after a one-day increase of over 20%. Yet, this initial euphoria was short-lived as investors waited for the S-1 files’ approval, resulting in a subsequent 10% price drop.
…not an unusual occurrence in the cryptocurrency market. In recent times, several altcoins have plummeted by over forty percent within a fortnight. You can find my analysis of why this is happening in my latest video.
— Michaël van de Poppe (@CryptoMichNL) June 16, 2024
Van de Poppe proposes that this stage of ambiguity could represent a typical “Selling Rumors, Buying News” situation. The Ethereum ETF approval may serve as a wider recognition of Ethereum being regarded as a commodity, leading to positive implications for the entire ecosystem.
Just like EmperorBTC, I’d like to add my perspective as a swing trader. The Ethereum ETF approval news could potentially have a positive impact on the entire cryptocurrency market, implying a bullish outlook.
One possibility: He proposes that an ETF based on Ethereum could bring about a fresh application for Ethereum, potentially resulting in a substantial increase in investment for Ethereum as well as various other cryptocurrencies.
From my research standpoint, I believe the latest correction in prices served as a crucial filtering mechanism, purging impulsive investors who were not prepared for market volatility. This cleansing process paves the way for a robust accumulation phase where investors with a long-term outlook can buy at more attractive prices. Subsequently, there’s a strong possibility that we might witness another powerful price surge, reminiscent of the Bitcoin halving event in 2020.
Another analyst drew parallels between the expected ETH ETF and the earlier Bitcoin ETF approvals.
At first, the introduction of Bitcoin ETFs caused a temporary decrease in Bitcoin’s price. This was mainly attributed to the “sell the news” effect, which refers to investors selling off their holdings after positive news has been announced. Additionally, Grayscale’s GBTC selling had an impact on the price as well.
As a researcher, I’ve observed that Bitcoin Exchange-Traded Funds (ETFs) have had a positive impact on Bitcoin prices over the long term. Although there might be an initial dip in Ethereum prices due to market shock following the introduction of ETH ETFs and the Grayscale Ethereum Trust (ETH), my analysis suggests that the bullish trend will persist in the long run.
The ETHE discount’s shrinkage has limited the possibility of substantial selling off when the ETFs become available.
ETH price prediction: long-term view
Based on the assessment of a cryptocurrency expert, utilizing technical analysis, Ethereum (ETH) is presently being traded within a bull flag or a parallel channel.
As a researcher studying the price movements of Ethereum (ETH), I’ve identified key levels that could significantly impact its trajectory. If ETH manages to break above the $4,000 resistance, this event could potentially spark a robust bullish trend. Consequently, prices might surge towards the $6,000-$7,000 range. However, if ETH fails to hold above the support level at $3,650 and instead breaks down below it, this could trigger a bearish response, potentially leading to a decline towards the $3,152 mark.
As a researcher studying Ethereum price predictions using algorithmic forecasting methods, I’ve come across diverse viewpoints regarding the potential direction of Ethereum’s value in the upcoming years.
Based on the analysis of Priceprediction.net, Ethereum’s estimated price in 2024 is approximately $4,947. In contrast, Digitalcoinprice anticipates a more elevated value of around $7,365 for Ethereum during the same timeframe.
As a researcher looking into Ethereum price predictions for the mid-decade, I’ve come across varying projections for ETH‘s value in 2025. Priceprediction.net suggests a potential rise to $6,847, while Digitalcoinprice forecasts an even higher figure of $8,971.
In plain language, the projected Ethereum prices for the year 2030, as suggested by two different sources – Priceprediction.net and Digitalcoinprice – vary greatly. The former forecasts a substantial price of $46,089, while the latter predicts a more moderate estimate of $24,786.
As a researcher examining algorithmic forecasts, I cannot stress enough that while these predictions offer valuable perspectives, they come with an inherent degree of uncertainty and susceptibility to market fluctuations. It is crucial for us to keep in mind the potential risks and uncertainties associated with such forecasts.
Be mindful not to put in more funds than you are prepared to potentially wave goodbye to, as the cryptocurrency market carries significant volatility, with values frequently experiencing steep changes.
To ensure success in your financial endeavors, it is essential that you conduct thorough research, keep yourself updated with current information, and make investment choices according to your personal risk threshold and objectives.
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2024-06-17 21:25