On July 23, Bitcoin bulls fought to defend $66,000 as the U.S. spot Ethereum exchange-traded fund (ETF) surprised analysts.
Ether ETF performance is impressive
Bitcoin (BTC) price strength is rebounding after initial weakness on Wall Street, according to data from Cointelegraph Markets Pro and TradingView.
The launch of spot ETH ETF trading appeared to take market participants by surprise, with volumes exceeding $100 million in just 15 minutes, sending ETH/USD up 2.3%, recovering from its initial plunge.
“So far the spot ETF launch has been as expected – profit taking sell-offs on both puff and spot. The move has retraced and OI remains high,” popular trader Skew wrote in part of a report on X.
Skew noted that open interest in ETH derivatives markets has increased both before and after the launch.
“The ETH ETF has crazy numbers. In the first 15 minutes, it already hit $112 million in volume, which is 50% of Bitcoin’s first day,” Michael van de Poppe, founder and CEO of trading firm MNTrading, wrote in his X response.
“Ethereum ETF launch is significantly undervalued and we expect it to trade at ATH within the next 1-2 months.”
Popular trader Daan Crypto Trades described the initial flow as “decent” and predicted that the cryptocurrency market will become more volatile.
As Cointelegraph reported, ahead of the ETF launch, the price of ETH showed a consistent pattern of movement, which was the opposite of Bitcoin’s price before the ETF trading began in January.
Bitcoin faces a short-term bearish threat.
Meanwhile, Bitcoin reversed its initial downtrend and recovered $67,000.
Related: XRP Price Has Been Below $1 Since 2021, But That Could Change in Q4
According to the latest data from monitoring resource CoinGlass, new buyer liquidity has emerged at $65,750, while selling pressure has also increased.
As expectations of a new uptrend grew, investors remained generally optimistic.
Popular trader Jelle recently claimed in his analysis of BTC price during the high timeframe that “this is a 5-month candle that will turn the previous cycle high into support.”
“A solid foundation is being built for the next bear market low. The best is yet to come.”
Cryptocurrency markets are still in wait-and-see mode even after the launch of the latest ETF, trading firm QCP Capital said in a recent announcement to its Telegram channel subscribers.
“Market reaction to the launch of the ETH Spot ETF has been muted, with investors watching to see if it follows a ‘buy on hype, sell on news’ pattern,” the article reads.
“For comparison, BTC fell to $38,000 after the ETF launch peak, but hit a new all-time high two months later.”
QCP warned that when judging the options market action, traders expect the bears to win in the short term, which will take the form of new payments to creditors of the shuttered Mt. Gox exchange and geopolitical uncertainty.
“It is possible that the ETH Spot ETF will not initially have an impact on the price, and that there will likely be selling pressure from the US government and Mt Gox, so prices could remain low until the momentum builds leading up to the election,” he concluded.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.