The recent Ethereum price drop appears to be a classic case of “buying the rumor and selling the fact.” Experts predict that the price of Ethereum could soon surge by more than 60% as institutional investor interest in futures grows.
The party may be put on hold for cryptocurrency strength, at least for now. May 23, 2024 Despite the U.S. Securities and Exchange Commission’s (SEC) landmark approval of several Ethereum (ETH) exchange-traded funds (ETFs), Bitcoin (BTC) and Ethereum prices have experienced declines over the past 24 hours. .
Photo: CoinMarketCap
This price drop appears to be a classic case of “buying the rumor and selling the fact.” Ethereum, which had surged 20% in the week before approval, fell 5.87%, and Bitcoin fell 3.53% after the SEC’s decision to approve the Ethereum ETF. The overall market capitalization also decreased by 1.19%, reaching $2.44 trillion.
Ethereum price falls after ETF approval
“This decline is not surprising,” said Alex Kuptsikevich, senior market analyst at FxPro. “We should not be surprised if the price moves back towards the $3,000 level and into an important consolidation area. At these levels, large institutional investors can begin building ETF positions.”
Kuptsikevich points to similar price movements seen in January 2024 following the approval of the first Bitcoin ETF. Bitcoin price initially fell 19% before experiencing a significant rebound.
While the SEC’s approval of Form 19B-4 is a significant step forward for the Ether ETF, it is important to note that the fund has not yet been approved for trading. Before investors can purchase shares, the SEC must approve individual S-1 filings.
However, the approval process appears to be ongoing. The SEC approved eight ETF proposals from major financial companies: BlackRock, VanEck, Fidelity, Franklin Templeton, Bitwise, ARK Invest 21Shares, Invesco Galaxy, and Grayscale. These ETFs are expected to be listed on major exchanges such as Nasdaq, NYSE Arca, and Cboe BZX.
Long-term optimism continues
Despite the recent price drop, experts remain hopeful about the future of Ethereum and the cryptocurrency market as a whole. Standard Chartered, for example, predicts that the Ether ETF could raise up to $45 billion in its first year. QCP Capital predicts that the price of Ethereum could soon surge by more than 60% due to growing interest from institutional investors in futures and direct purchases.
The recent drop in the price of Ethereym following the approval of the Ether ETF demonstrates the volatile nature of the cryptocurrency market. However, it is important to see this as part of Ether’s growth story. The approval of these groundbreaking ETFs is paving the way for more investments from institutional participants.
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