Why is the Ethereum Price Dropping? Will ETH ETF Approval Bring Reversal?
Right now, Ethereum is going through a tough situation. Its price has fallen to a severe low of $2,875. In the last 24 hours alone, it has witnessed a fall of over 10.2%. This month is very crucial for Ethereum. There were reports that the Spot Ethereum ETFs would be launched in July 2024.
The US Securities and Exchange Commission approved nearly eight spot Ethereum ETF applications in May. At this juncture, can the launch be the antidote to the continuing fall of the price of Ether? Let’s analyze the possibilities in depth. Are you ready?
Ethereum Market Overview: What We See Now
Sellers have taken control of the Ethereum market, pushing the price to as low as $2,875. A couple of days before, the ETH price was around $3,439. This week, the price has seen extreme volatility. The price primarily oscillated between $3,500 and $2,700.
A drop of nearly 16.3% has been observed this week. Notably, on June 5 last month, the price was around $3,864. In the last 30 days, it has dropped over 24.1%. The yearly peak of Ethereum is around $4065, which was reached in mid-March.
Ethereum’s performance in 2024 resembles Bitcoin’s journey. Both saw their prices touch the yearly peak in mid-March, weaken afterward, and experience volatility in the last few months, including a steep drop in the last few days.
Ethereum Historic Trend: Points to Remember
A week before the SEC approved the spot ETH ETF applications on May 23, the price had started to climb aggressively. That week, at least three long green candlesticks were formed in the daily chart of Ethereum. The longest one was created on May 20, when the price climbed from $3,071 to $3,661 in a single day. The buying pressure formed during that week sustained until early June. Since June 6, sellers have been slowly increasing their strength in the market.
Bitcoin Spot ETF Launch: Historic Market Impact Analysis
The first eleven Bitcoin spot ETFs were approved by the US SEC on Jan 10, 2024. Let’s see how the Bitcoin market reacted to the approval. The launch could not make any immediate reaction in the market. The price oscillated between $47,018 and $42,900 a week before the lunch. On Jan 10, the price was approximately $46,689, slightly lower than that week’s peak.
The week after the launch, the price saw a few small drops. That week, the price remained between $46,700 and $41,700. But, nearly a month after the lunch, Bitcoin met a strong buying pressure, taking the price from as low as $42,576 to as high as $73,136 in one month.
The above presented data proves that there is enough ground for the assumption that the launch of Ethereum Spot ETF can help the market in a big way. But, it may take at least a month to create a visible momentum in the chart.
Stay tuned to Coinpedia for more updates on the Ethereum price journey!
