The recent Ethereum price dip appears to be a classic case of “buy the rumor, sell the fact” behavior. Experts forecasts that Ether price could jump by more than 60% soon, driven by growing interest from institutional investors in futures.
By Bena Ilyas
Edited by Julia Sakovich
Updated
3 mins read
The party may be on hold for crypto bulls, at least for now. Despite the landmark approval of several Ethereum (ETH) exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) on May 23, 2024, both Bitcoin (BTC) and Ether prices experienced a decline in the past 24 hours.
Photo: CoinMarketCap
This price dip appears to be a classic case of “buy the rumor, sell the fact” behavior. Ethereum, which had surged by 20% in the week leading up to the approval, saw a 5.87% drop, while Bitcoin saw a decline of 3.53% following the SEC’s decision of Ethereum ETFs approval. The total market capitalization also declined by 1.19%, reaching $2.44 trillion.
“This pullback shouldn’t be a surprise,” says Alex Kuptsikevich, a senior market analyst at FxPro. “We shouldn’t be surprised if the price pulls back to the $3000 area again, returning to an important consolidation area. From these levels, large institutional investors can start building a position in ETFs.”
Kuptsikevich points to the similar price movement witnessed in January 2024 following the approval of the first Bitcoin ETF. Bitcoin’s price initially dipped 19% before experiencing a significant rebound.
While the SEC’s approval of the 19B-4 forms is a significant step forward for Ether ETFs, it’s important to note that these funds are not yet cleared to trade. The SEC still needs to greenlight the individual S-1 filings before investors can purchase shares.
However, the approval process appears to be moving forward. The SEC has given the go-ahead to eight ETF proposals from major financial players like BlackRock, VanEck, Fidelity, Franklin Templeton, Bitwise, ARK Invest 21Shares, Invesco Galaxy, and Grayscale. These ETFs are expected to list on major exchanges like the Nasdaq, NYSE Arca, and Cboe BZX.
Even with the recent drop in price, experts are still hopeful about Ether’s future and the crypto market as a whole. For instance, Standard Chartered forecasts that Ether ETFs could attract up to $45 billion in their first year. QCP Capital expects that Ether’s price could jump by more than 60% soon, driven by growing interest from institutional investors in futures and direct purchases.
The recent price fall of Ethereym after the Ether ETF received the green light shows the volatile nature of the crypto market. However, it’s important to see this as just a part of Ether’s growth story. These groundbreaking ETF approvals are setting the stage for more investment from institutional players.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
With over 3 years of crypto writing experience, Bena strives to make crypto, blockchain, Web3, and fintech accessible to all. Beyond cryptocurrencies, Bena also enjoys reading books in her spare time.
