Ethereum price has held relatively well in the past few days as the odds of spot ETF approvals rose. 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 by 13% from its highest point this month.
The main catalyst for Ethereum is the anticipated spot Ethereum ETF approval by the Securities and Exchange Commission (SEC). As we reported on Thursday, there is a rising possibility that spot Ethereum ETFs will start trading soon.
The rising anticipation happened after VanEck filed form 8-A, which is an important document in the ETF application process. Eric Balchunas, a senior ETF analyst at Bloomberg believes that these funds will start trading on July 2nd.
The approval of spot Ethereum ETFs would be a big deal. As we saw with Bitcoin, there is a strong demand for cryptocurrencies from institutional investors.
Similarly, the Grayscale Ethereum Trust (ETHE), which has a management fee of 2.50%, has over $10 billion in assets. As such, lower-priced funds will likely see heavy demand from retail and institutional investors.
Ethereum ETFs will also start trading at a time when balances in exchanges continue dropping, as shown below.
Ethereum reserves in exchanges
Ethereum’s ecosystem is still doing well even as the crypto sell-off continued. The network has over $108.95 billion in total value locked (TVL) and almost $80 billion in stablecoins. It has collected fees worth $1.65 billion, higher than Tron’s and Bitcoin’s combined.
Analysts are bullish on Ethereum price
Some of the top crypto analysts believe that Ethereum is on the cusp of a bullish breakout. In an X thread, Rekt Finance noted that Ethereum’s open interest in the futures market was rising, which is a sign of institutional demand ahead of the ETF approval.
He also noted that Ether was a deflationary asset that has constantly been reducing its supply over time. Altogether, he expects that ETH will jump after the ETF approval, then move to a consolidation or pullback as many Grayscale Ethereum Fund holders move to cheaper options, and then it will resume its bullish trend.
In another Tweet, Crypto Rover, who has over 700k 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 that the breakout could happen soon.
