The US SEC approved the Ethereum ETFs to begin trading yesterday onwards. Many anticipated ETH’s price to spike, similar to Bitcoin’s (BTC) after the launch of the BTC ETFs earlier this year. This was not the case for the ETH ETF launch. ETH has plummeted by 7.3% in the daily charts, 6.6% in the weekly charts, and 6% over the previous month.
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ETH has witnessed an increase in liquidations in the last 24 hours, leading to a significant price correction. CoinGlass data shows that ETH has faced over $100 million in liquidations. According to Spot On Chain, an ETH whale deposited $34.2 million worth of coins to the popular crypto exchange Kraken just before the asset’s price plummeted.
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The developments show that the Ethereum ETF launch was more of a “sell-the-news” event and did not do much to push prices. Many hoped ETH would hit a new all-time high, similar to Bitcoin (BTC) reaching a new peak in March, after the BTC ETF launch.
Will Ethereum recover?
ETH may regain momentum in due time. BTC hit a new all-time high about two months after the ETF launch. We may witness something similar for ETH as well.
According to the analysts at CoinCodex, ETH will continue to trade at around current levels for the next few days but anticipates a rise to $3391 on Aug. 1, 2024. Changelly also anticipates ETH’s price to recover a little over the next few days, hitting $3,461.96 on Aug. 1, 2024.
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An Ethereum rally might be delayed and we may witness a price spike over the next few weeks.