Days after hitting a monthly high of $3,943, ethereum (eth) price has begun to correct.
The initial surge came after the US Securities and Exchange Commission (SEC) approved applications from NASDAQ and NYSE to list ethereum exchange-traded funds.
Although ETF issuers still need final approval before their products can launch, the SEC's May 23 decision marked a significant and unexpected victory for the companies that had submitted applications and for the crypto industry as a whole.
Until Monday, many had anticipated that regulators would reject the filings. Nine issuers, including VanEck, ARK Investments/21Shares and BlackRock, hope to launch ethereum-linked ETFs, following the SEC's approval of bitcoin ETFs in January, which was another historic moment for the sector.
However, after the initial jump following the ETF's approval, the price of the second-largest cryptocurrency by market capitalization has fallen more than 4% from that level and is now trading at $3,760.
Still, the new price reflects a very modest 0.9% rally in the last 24 hours and a more significant 20.7% increase over seven days. Similarly, the current price represents a 28.5% improvement compared to the price at which eth was trading fifteen days ago and a 19% jump in 30 days, according to ethereum” target=”_blank” rel=””>data from CoinGecko.
<img decoding="async" width="1600" height="1168" src="https://crypto.news/app/uploads/2024/05/image-18.png” alt=”ethereum Price Pulls Back After ETF Approval Surge, But Long-Term Outlook Remains Bullish – 1″/>
In the last 24 hours, the price of ethereum has been consolidating, fluctuating between $3,776 and $3,710. This price action usually indicates a buildup of momentum that could lead to a breakout, either above or below the current consolidation range.
At this time, the next direction for eth remains uncertain.
However, analysts at trading firm QCP Capital suggest that the SEC's approval of ethereum spot ETFs could push eth prices to $5,000 by the end of the year.
