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Bullish Outlook for Ethereum After ETF Approval Despite Recall
A few days after hitting the monthly high of $3,943, the price of Ethereum (ET) started correcting.
The initial increase followed the U.S. Securities and Exchange Commission’s (SEC) approval of applications from the NASDAQ and NYSE to list Ethereum exchange-traded funds.
Although ETF issuers still need final approval before their products can launch, the SEC’s decision on May 23 marked a significant and unexpected victory for companies that had submitted applications and for the cryptocurrency industry in general.
Until Monday, many predicted that regulators would reject the filing. Nine issuers, including VanEck, ARK Investments/21Shares and BlackRock, hope to launch Ethereum-linked ETFs, following SEC approval in January Bitcoin ETFswhich was another seminal moment for the industry.
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.
However, the new price reflects a very modest increase of 0.9% over the past 24 hours and a more significant increase of 20.7% over seven days. Likewise, the current price is a 28.5% improvement from the level where ETH was trading two weeks ago and a 19% jump in 30 days, according to data by CoinGecko.
Ethereum 24 Hour Price Chart | Source: CoinGecko
In the last 24 hours, the price of Ethereum has consolidated, fluctuating between $3,776 and $3,710. Such price behavior typically indicates a buildup of momentum that could lead to a breakout, either above or below the current consolidation range.
At this juncture, ETH’s next direction remains uncertain.
However, analysts at trading firm QCP Capital suggest that SEC approval of Ethereum spot ETFs could push ETH prices higher. $5,000 before the end of the year.