Following a surge to a monthly high of $3,943, the price of Ethereum (
ETH
) has now started to correct itself.
The initial increase came after the U.S. Securities and Exchange Commission (SEC) gave the green light to NASDAQ and the NYSE to list exchange-traded funds linked to Ethereum. While final approval is still pending for the ETF issuers, the SEC’s decision on May 23 was a significant win for the firms that had applied and the broader crypto industry.
Many had expected the regulators to reject the applications until Monday. Nine issuers, including VanEck, ARK Investments/21Shares, and BlackRock, are looking to launch Ethereum-linked ETFs, following the SEC’s approval of Bitcoin ETFs back in January, a pivotal moment for the sector.
Despite the initial excitement surrounding the ETF approval, the price of the second-largest cryptocurrency by market capitalization has dropped over 4% from its peak to $3,760.
Nonetheless, the current price shows a slight 0.9% increase in the last 24 hours and a more significant 20.7% rise over the past week. It also marks a 28.5% improvement from where ETH was trading two weeks ago and a 19% jump over the last month, according to data from CoinGecko.
Over the past day, Ethereum’s price has been consolidating within a range of $3,776 and $3,710. Such price movement typically indicates a build-up of momentum that could result in a breakout above or below the current range.
At this point, the future direction of ETH remains uncertain. However, analysts at trading firm QCP Capital believe that the approval of spot Ethereum ETFs by the SEC could potentially push ETH prices to
$5,000
by the end of the year.
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