Analysts believe that the price of Ether could soar to all-time highs in the coming months after the first Ether spot Ether ETF (exchange-traded fund) is launched in the US. Traders believe that such a fund is “highly undervalued.”
Spot Ethereum (ETH) ETFs began trading on July 23, a day after the U.S. Securities and Exchange Commission gave final approval to issuers including BlackRock, Fidelity, 21Shares, Bitwise, Franklin Templeton, VanEck, and Invesco Galaxy.
In just 15 minutes after trading began, the ETF recorded an impressive trading volume of $120 million.
“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.”
Meanwhile, fellow trader Daan Crypto Trades predicted increased volatility in the cryptocurrency market, describing the initial flow as “decent.”
“I think it’s going to be an unstable day with a lot of movement ahead!”
In a previous post, Daan Crypto Trades shared the chart below showing the key levels that ETH price needs to break through on its recovery path.
According to their analysis, Ether bulls needed to overcome the resistance of the stubborn supply zone extending from $2,672 to $3,730 to secure the uptrend. This also depended on holding solidly above $3,350.
“ETH levels are clear. It needs to hold $3350 and will be bullish. Expect a lot of movement these days surrounding the ETF launch.”
“ETH price hits $3,450 as investors brace for an exciting ride,” cryptocurrency trader Alessa Mutto declared in a July 23 post to X, adding, “I am very bullish on crypto and ETFs and believe they will skyrocket in the coming years.”
However, Muto acknowledged that spot Ether inflows over time will give an indication of where the Ether price is headed going forward.
Related: Bitcoin Up $1.2K in 1 Hour as BTC Price Rebounds on Ether ETF Launch
The Spot ETH ETF recorded a trading volume of $360 million in the first 90 minutes of trading.
Spot Ethereum ETFs saw a total volume of $361 million in the first hour and a half of trading, according to data compiled by Bloomberg’s chief ETF analyst, Eric Balchunas.
In a previous post, Balchunas provided insight into the volume compared to when the spot Bitcoin ETF began trading in the United States on January 11.
“Here are the volumes after 15 minutes of trading opening. A total of $112 million was traded in this group (which is huge compared to a typical ETF launch, but only half the DAY ONE volume rate for a Bitcoin ETF. But 50% would be over the top in my opinion).”
The US-based spot Bitcoin ETF has been hailed by market participants as the most successful ETF launch ever. The fund recorded cumulative trading volume of $300 billion in the first half of the year, and total assets under management stood at $62.12 billion as of July 22.
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.