Following approval of ETFs

In the aftermath of reaching a monthly peak of $3,943, Ethereum (
ETH
) has commenced a correction in its price.
The surge in value came following the U.S. Securities and Exchange Commission (SEC) giving the green light to NASDAQ and the NYSE to list exchange-traded funds linked to Ethereum.
While ETF issuers are still awaiting final approval to launch their products, the SEC’s decision on May 23 was a significant and surprising win for the firms that had submitted applications and the wider cryptocurrency industry.
Prior to this development, many had expected the filings to be turned down. Nine issuers, including VanEck, ARK Investments/21Shares, and BlackRock, are looking to introduce ETFs tied to Ethereum, following the SEC’s approval of
Bitcoin ETFs
in January, which was also a pivotal moment for the industry.
Despite the initial price surge post-ETF approval, the value of the second-largest cryptocurrency by market cap has dipped by over 4% from that point and is currently trading at $3,760.
Furthermore, the recent price reflects a modest 0.9% increase in the past 24 hours and a notable 20.7% rise over the last seven days. Additionally, the current price marks a 28.5% improvement from where ETH was trading two weeks ago and a 19% increase over the past month, as per
data
from CoinGecko.
Over the past day, Ethereum’s price has been consolidating, oscillating between $3,776 and $3,710. Such price movement typically suggests a buildup of momentum that could result in a breakout, either above or below the current consolidation range.
At this juncture, the future direction of ETH remains uncertain.
Nevertheless, analysts at trading firm QCP Capital propose that the approval of spot Ethereum ETFs by the SEC could propel ETH prices to
$5,000
by the year’s end.
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