The price of Ethereum has held up relatively well in recent days as the chances of approval for spot ETFs have increased. The ETH token was trading at $3,455 on Friday, a few points above this week’s low of $3,233. It remains in a correction zone after falling 13% from its highest point this month.
The main catalyst for Ethereum is the anticipated spot approval of the Ethereum ETF by the Securities and Exchange Commission (SEC). As we reported on Thursday, there is a growing possibility that Ethereum spot ETFs will begin trading soon.
The growing anticipation occurred after VanEck filed Form 8-A, which is an important document in the ETF application process. Eric Balchunas, senior ETF analyst at Bloomberg, estimates that these funds will begin trading on July 2.
The approval of Ethereum spot ETFs would be a big deal. As we’ve seen with Bitcoin, there is a strong demand for cryptocurrencies from institutional investors.
Similarly, the Grayscale Ethereum Trust (ETHE), which has a management fee of 2.50%, has over $10 billion in assets. As such, low-cost funds will likely see strong demand from retail and institutional investors.
Ethereum ETFs will also begin trading at a time when exchange balances continue to decline, as shown below.
The Ethereum ecosystem is still doing well, even though the sale of cryptocurrencies continues. The network has over $108.95 billion in total value locked (TVL) and nearly $80 billion in stablecoins. It collected fees worth $1.65 billion, higher than Tron and Bitcoin combined.
Analysts are bullish on Ethereum price
Some top crypto analysts believe that Ethereum is on the cusp of a bullish breakout. In an X thread, Rekt Finance noted that Ethereum’s open interest in the futures market is increasing, which is a sign of institutional demand ahead of the ETF approval.
He also noted that Ether was a deflationary asset whose supply has consistently declined over time. Overall, he expects ETH to surge after the ETF approval, then move into consolidation or pullback as many Grayscale Ethereum Fund holders shift to less expensive options. expensive, then it will resume its upward trend.
In another tweet, Crypto Rover, which has over 700,000 followers, noted that Ethereum has formed a descending channel that resembles a descending wedge pattern. In most cases, this is one of the bullish patterns that support the upside potential. He expects the breakout to happen soon.
