- Spot Ethereum ETFs expected, could attract $15 billion initial capital inflow.
- SEC Chair comments on Ethereum ETFs approval process, no timeline given.
- Ethereum price fluctuates, and the market anticipates ETFs could drive a surge past $4,000.
The cryptocurrency market’s attention has pivoted to the expected launch of spot Ethereum ETFs. Market analysts are forecasting that these ETFs could see an initial capital inflow of as much as $15 billion, which has sparked widespread interest and speculation. Despite this, the market has seen volatility, with Ethereum
SEC Chair Gary Gensler has made remarks about the ongoing process for the approval of spot Ethereum ETFs, noting that it is proceeding without issues. He pointed out that the crucial aspect for asset managers is to ensure they provide full disclosure in their filings. However, he did not provide a definitive timeline for approval. Analysts speculate that approval could be granted as soon as the following week.
Eric Balchunas, a leading ETF analyst, has suggested that ETFs based on Ethereum could be introduced by July 2. Additionally, a report from Reuters has suggested that the SEC might give the green light to spot Ethereum ETFs by July 4. Analysts also believe that in order for spot Ether ETPs to reach a level of parity, they would need to gather around $35 billion in assets, a goal that may require approximately 18 months to achieve.
Ethereum Poised for Potential Surge
The current sentiment in the Ethereum market is uncertain, mirroring a wider trend impacting numerous cryptocurrencies, including Bitcoin. At the moment of this report, Ethereum’s trading price is $3,367, with its market capitalization surpassing $404 billion. There has been a 6.18% reduction in daily trading volume over the last 24 hours, now at $11.46 billion.
The pullback from the high in May, which was close to $4,000, demonstrates the challenges that Ethereum (ETH) has in maintaining prices over the $4,000 mark. The significant level of support is currently found at $3,300, and a breach of ETH below this point could lead to a decline to $3,200 and possibly a further drop to $3,000. A continued trade beneath this level may decrease to $2,800 and then to $2,500.
Moreover, the current trend in the relative strength index (RSI) indicates a persistent bearish momentum, which suggests that the selling pressure may continue. Additionally, Ethereum’s current price movement is below the 50-day simple moving average yet above the 200-day simple moving average, which reflects a tug-of-war between bearish and bullish dynamics.
On the brighter side, this forecast for Ethereum’s price suggests that the launch of spot Ethereum exchange-traded funds (ETFs) could turn market sentiment to the positive side, motivating traders to put their money into ETH in anticipation of a surge past the $4,000 level. Should there be a substantial increase in ETF inflows, Ethereum could experience a surge that takes it to the $4,500 territory, and it might even reach beyond the $5,000 threshold.
The Ethereum market is currently in a state of anticipation, with the decision on the approval of Ethereum ETFs being a pivotal factor that will likely influence the direction of future price trends and the mood of investors.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
