Ethereum
Why is Ethereum Price Falling? Will ETH ETF Approval Cause a Reversal?
Ethereum is currently going through a rough patch, with its price having dropped to an extremely low $2,875. In the last 24 hours alone, Ethereum has seen a significant drop of over 10.2%. This month is particularly crucial for Ethereum, as reports suggest that Ethereum ETFs under the microscope are expected to be launched in July 2024.
The U.S. Securities and Exchange Commission approved nearly eight Ethereum Spot ETF applications in May. At this critical juncture, can the launch reverse the continued decline in Ether’s price? Let’s take a closer look at the possibilities.
Ethereum Market Overview: What We See Now
Sellers took control of the Ethereum market, pushing the price up to $2,875. A few days earlier, the ETH Price The price of Bitcoin was around $3,439. This week, the price has seen extreme volatility. The price has mainly fluctuated between $3,500 and $2,700.
This week alone, Ethereum has seen a drop of nearly 16.3%. On June 5th of the previous month, the price was around $3,864, a drop of over 24.1% in the last 30 days. Ethereum’s yearly peak was $4,065, reached in mid-March.
Parallels with Bitcoin performance
Ethereum’s performance in 2024 mirrors Bitcoin’s journey. Both cryptocurrencies hit their yearly highs in mid-March, weakened afterward, and have experienced some volatility in recent months, culminating in a sharp decline in recent days.
A week before the SEC approved the ETH Spot ETF applications on May 23, Ethereum’s price began to climb aggressively. That week, at least three long green candlesticks appeared on Ethereum’s daily chart. The longest occurred on May 20, when the price rose from $3,071 to $3,661 in a single day. This buying pressure continued until early June. However, since June 6, sellers have gradually regained strength in the market.
Learning from the launch of the Bitcoin Spot ETF
The first eleven Bitcoin Spot ETF were approved by the US SEC on January 10, 2024. Let’s see how the Bitcoin market reacted to this approval. The launch did not generate any immediate reaction in the market. The price fluctuated between $47,018 and $42,900 a week before lunch. On January 10, the price was around $46,689, slightly lower than this week’s peak.
In the week following its launch, Bitcoin experienced some minor declines, with prices hovering between $46,700 and $41,700. However, nearly a month after its launch, Bitcoin encountered strong buying pressure, propelling the price from a low of $42,576 to a high of $73,136 in a month.
The data suggests a promising outlook for Ethereum if Spot ETFs are launched as planned. While the immediate effects may not be visible, similar to Bitcoin’s experience, there is potential for a significant impact on the market over the next month.
The approval and launch of Ethereum Spot ETFs could potentially create the momentum needed to pull Ethereum out of its current slump.
Read also: Bitcoin ETF vs Ethereum ETF: Can Ether ETFs Exceed Expectations Despite Bitcoin Dominance?
What do you think? Will Spot ETFs be the key to Ethereum’s recovery, or is there another factor at play? Share your thoughts.