ethereum price has held up relatively well in recent days as the odds of spot ETF approvals have increased. The eth token was trading at $3,455 on Friday, a few points above this week's low of $3,233. It remains in a correction zone after falling 13% from its peak this month.
The main catalyst for ethereum is the early approval of the ethereum Spot ETF by the Securities and Exchange Commission (SEC). As we reported on Thursday, there is a growing possibility that ethereum spot ETFs will begin trading soon.
The growing anticipation came after VanEck filed Form 8-A, which is an important document in the ETF application process. Eric Balchunas, senior ETF analyst at Bloomberg, believes these funds will begin trading on July 2.
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Approval of ethereum spot ETFs would be a big deal. As we saw with bitcoin, there is strong demand for cryptocurrencies from institutional investors.
Similarly, Grayscale ethereum Trust (ETHE), which has a management crypto-products/grayscale-ethereum-trust” target=”_blank” rel=””>2.50% rate
ethereum ETFs will also begin trading at a time when balances on exchanges continue to fall, as shown below.
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ethereum Reserves on Exchanges
The ethereum ecosystem is still doing well even as the cryptocurrency sell-off continued. The network has over $108.95 billion in ethereum?currency=eth” target=”_blank” rel=””>total value locked (TVL) and nearly $80 billion in stablecoins. It has collected $1.65 billion worth of fees, more than Tron and bitcoin combined.
Analysts are bullish on ethereum price
Some top crypto analysts believe that ethereum is on the verge of a bullish breakout. In an x-thread, Rekt Finance noted that ethereum’s open interest on the futures market was increasing, which is a sign of institutional demand ahead of the ETF approval.
He also noted that Ether was a deflationary asset that has been steadily reducing its supply over time. All told, he expects eth to jump after the ETF approval, then go into a consolidation or pullback as many Grayscale ethereum Fund holders opt for cheaper options, and then resume its uptrend.
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In another tweet, twitter.com/rovercrc/status/1806665349557076293″ target=”_blank” rel=””>Rover Cryptocurrencywho has over 700,000 followers, noted that ethereum had formed a descending channel that resembles a falling wedge pattern. In most cases, this is one of the bullish patterns that supports upside potential. He expects the breakout to happen soon.
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