As a researcher with a background in cryptocurrencies and market analysis, I find the recent price action of Ethereum (ETH) intriguing. The approval of eight spot Ethereum ETFs by the U.S. Securities and Exchange Commission (SEC) on May 23 was a significant development for the crypto community. However, the ETH price has remained relatively stable at around $3,800 since then, without showing clear signs of an uptrend.
As a researcher studying the Ethereum market, I’ve noticed an intriguing development: last Thursday, May 23, the U.S. Securities and Exchange Commission (SEC) gave its approval for a grand total of eight spot Ethereum Exchange Traded Funds (ETFs). A significant milestone in the crypto world!
Ethereum (ETH) Price Shows Major Volatility
Before the U.S. Securities and Exchange Commission (SEC) made public its verdict on Ethereum ETF proposal, the Ether (ETH) market underwent significant volatility. In the final nerve-wracking hour prior to the SEC’s announcement, ETH first plunged to around $3,500, coinciding with the standard U.S. stock market closure.
Following the rumors of approval, the price approached $3,900, but later surged past this mark and peaked at around $3,900. However, after confirmation, the price settled down slightly above $3,800. Amidst these dramatic price changes, a significant player in the market sold off an impressive 7,900 ETH, valued at approximately $29 million.
After $ETH dropped, a whale panic sold 7,921 $ETH at a price of 29.7M $USDT for $3,754.
The whale is a user of , and his $ETH was withdrawn from .
— Lookonchain (@lookonchain) May 23, 2024
In the tumultuous period, there was a significant increase in the liquidation of cryptocurrency derivative contracts with leverage exceeding $350 million collectively. This is the largest amount recorded since May 1st, based on information from CoinGlass.
Approximately $250 million worth of long positions, representing the majority of those liquidated, were held by traders who had expected prices to rise. This finding suggests that many traders, particularly those dealing with Ethereum, were caught off guard by the sudden price decrease and had used excessive leverage. The Ethereum market saw $132 million in liquidations as a result.
ETH Price Action Ahead?
As a researcher studying the Ethereum ETF market, I believe that the approval of these exchange-traded funds could potentially attract over $500 million in investments, according to industry analysts’ predictions. Nevertheless, it may take some time before this influx materializes and sets off a noticeable uptrend in the market.
As a crypto investor, I’ve been closely monitoring Ethereum’s on-chain data, and my analysis suggests that the cryptocurrency could establish a solid foundation above $4,000. This uptrend may continue, potentially reaching prices between $5,000 and $6,000 by August this year.
The acceptance of Bitcoin ETFs has resulted in substantial investment from institutions. It’s intriguing to observe how the introduction of an Ether ETF might further encourage institutional involvement.
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2024-05-24 08:04