ETH Price tumbles since SEC approved spot Ethereum ETFs trading. Analysts consider it reminiscent of the Bitcoin case after the spot ETFs debut.
The world’s largest altcoin, Ether (ETH), is yet to regain a turnaround since the US Securities and Exchange Commission approved ETH spot exchange-traded funds (ETFs). Despite their debut in the US, Ethereum ETFs are yet to save ETH from the price tumble.
Notably, ETH has slid 8.8% over the past seven days, per CoinGecko data, despite the long-awaited ETF trading. The ETH ETF debut aside, the plunge in Ether price prompts the question of when the new fund’s flow will create scarcity for the price to regain. Market analysts echo crypto experts in offering a bearish outlook, indicating the ETFs will take time.
Conotoxia Ltd market analyst Grzegorz Drozdz indicates that the current ETH slide resembles the 18% decline in BTC despite the influx of new capital after the Bitcoin ETFs launch. After that, the analyst suggests that Bitcoin surged nearly 100% to set a peak in mid-March. Such an outcome could possibly play out in ETH.
Ethereum ETFs Debut Fails to Stimulate ETH Price Rally
Analysts are reflecting on how Bitcoin ETFs impacted the crypto value from the base of predictions on how newly approved Ethereum ETFs will influence the ETH price. In particular, Bitcoin began at $46,000 during the ETF debut, only to stumble below $39,000 in a fortnight of the funds trading. The crypto would skyrocket to $73,000 in two months, catalyzed by record inflows into the price discovery path.
Liquid Fund partner at HashKey Capital, Jupiter Zheng, echoes the prediction that ETH price action could trace a similar trend as Bitcoin as reasonable. The partner with the Hong Kong ETH ETF issuer adds the need to consider the Mt.Gox repayment over the potential impact on the market. He predicts a clearer positive signal will emerge for Ethereum after August.
Zheng observes that the defunct Mt.Gox was the largest global BTC exchange until it shut down a decade ago following large-scale thefts. The Japanese-based exchange began repaying the creditors. The distribution triggers lingering fear of a major selloff that could drag Bitcoin price and the larger crypto market down.
Beyond the Mt.Gox repayments, the market analysts consider the US presidential election a glaring event. The lead-up to the nomination of the Republican candidate has featured twists that promise to influence the crypto market in Donald Trump’s candidacy.
Cube Exchange chief executive Bartosz Lipinski indicates that investors could sit out till Trump addresses the Bitcoin conference. The majority expect Trump to make a significant announcement that is likely to buoy the crypto market into a bullish spell.
Strong End-Year Activity for Crypto
Keyrock head of Business Development Justin d’Anethan considers the macro markets to be a critical factor regardless of the excitement brought by the new product.
d’Anethan’s stance on macro markets aligns with the widely anticipated rates cut by the US Federal Reserve. The central bank is projected to announce cuts in September and December, per a recent Reuters survey featuring 100 economists.
BIT Mining lead economist Youwei Yang considers Ethereum the king of altcoins, and interest is set to emerge during the alt season. Such a window is unlikely until the Fed announces lower interest rates and additional risk-on funds emerge.
YouHolder risk manager Sergei Gorev explains that November is historically the strongest month for crypto. The macro market and election factors could deliver a thrust for quotation in autumn. Such would deliver a much-needed reversal following the low business activity witnessed in the summer.
The experts agree that though many factors appear to push the price down, the market retains a bullish outlook. Notably, experts are optimistic that strong inflows from the ETH ETFs could deliver a turnaround catalyst that would fuel the ETH’s bullish steam. Also, the constricting macroeconomic factors likely to disappear could usher a good end to 2024.
Editorial credit: gopixa / Shutterstock.com