Ethereum Dips Below $3700 Following ETF Approval: Analysts Weigh In

Following the approval by the SEC of Form 19b-4 applications for launching spot Ethereum ETFs, the underlying asset fell by 7.5%—from $3950 to $3650. 

Briefly, the cryptocurrency dipped below $3500. At the time of writing, ETH had recovered to $3710.

Julio Moreno, Head of Research at CryptoQuant, noted that the market likely already factored in the regulator’s decision into the asset’s price. 

Seems like the market has already priced the Ethereum spot ETF approval.

Grayscale’s ETHE discount to ETH has significantly narrowed in the last few days.

The same happened between GBTC and Bitcoin as the Bitcoin Spot ETF approval was nearing. pic.twitter.com/EocrSnkj8z

— Julio Moreno (@jjcmoreno) May 23, 2024

“In recent days, the discount of Grayscale’s ETHE to Ethereum has significantly narrowed. The same occurred with GBTC as the Bitcoin spot ETF approval approached,” he emphasized. 

Michael van de Poppe, founder of MN Trading, expressed a similar view. He asserts that “the approval was already priced in due to the strong 20% move.”

Primary question:

Why is the market not moving for #Ethereum?

Well, the approval was already priced in due to the strong 20% move.

It’s a waiting time until the listing takes place, and then the inflow will provide whether there’s a strong continuation upwards.

— Michaël van de Poppe (@CryptoMichNL) May 24, 2024

“Now it’s a waiting period until the listing, and then inflows will indicate whether there will be a strong continuation of growth,” van de Poppe stated.

According to Thomas Fahrer, co-founder of ApolloSats, the Grayscale trust launched in 2017 has accumulated approximately $9 billion worth of ETH. The expert believes these funds will soon be unlocked. 

The Grayscale Ethereum Trust launched in 2017 and accumulated most of it’s $9 Billion dollars worth of ETH well before staking existed.

These funds will be unlocked now.

Expect a bloodbath.

It will accelerate the ETH -> #BTC Trade

— Thomas | heyapollo.com (@thomas_fahrer) May 24, 2024

“Expect a bloodbath. This will strengthen Ethereum relative to Bitcoin,” added Fahrer. 

Analyst Captain Faibik highlighted the breach of the lower boundary of the “Rising Wedge” pattern on the weekly Bitcoin dominance (BTC.D) chart. In his view, this signals the start of an altcoin season. 

$BTC.D is finally Breaking the Rising Wedge on the Weekly timeframe chart..!!#Altseason 2024-25 is already Started..???

Let’s make some Money.. ??#Crypto #Bitcoin #Altcoins pic.twitter.com/KQcdGbMtuf

— Captain Faibik (@CryptoFaibik) May 24, 2024

The expert forecasts a decline in BTC.D to 45%. Currently, the indicator stands at 54.25%.

Considering the market situation in January after the approval of Bitcoin ETFs, heightened volatility is likely. At the start of the year, the leading cryptocurrency fell nearly 20% from the onset of fund trading. 

Trader Rekt Capital asserts that “altcoins are following the plan.” 

$ALTS

Altcoins are following the plan…

Altcoins bottomed in early February ✅

Altcoins sold off around the #BTC Halving ✅

Altcoins to bottom early Summer ⏰⏰⏰$BTC #BitcoinHalving #Bitcoin https://t.co/g5QUFIDE8O pic.twitter.com/llrxP6eaZH

— Rekt Capital (@rektcapital) May 23, 2024

According to his observations, the sector hit a bottom in February, followed by a sell-off after the Bitcoin halving. Altcoins are expected to reach a local low in early summer, followed by growth, the analyst believes. 

Earlier, Bernstein predicted an increase in Ethereum prices to $6600 following the approval of exchange-traded funds.

Previously, Matrixport co-founder Daniel Yan suggested that Solana might be the next candidate for launching such an instrument.