Rewritten Article:
Ethereum’s price has remained relatively stable in recent days as the chances of spot ETF approvals have increased. On Friday, the ETH token was trading at $3,455, slightly above this week’s low of $3,233. Despite a 13% drop from its peak this month, it is still within a correction zone.
The main catalyst for Ethereum’s movement is the anticipated approval of spot Ethereum ETFs by the Securities and Exchange Commission (SEC). This rising anticipation came after VanEck filed form 8-A, a crucial document in the ETF application process. Bloomberg’s senior ETF analyst, Eric Balchunas, believes that these funds will begin trading on July 2nd.
The approval of spot Ethereum ETFs would be significant, as seen with Bitcoin, where institutional investors have shown a strong demand for cryptocurrencies. The Grayscale Ethereum Trust (ETHE), with a management fee of 2.50%, already holds over $10 billion in assets. Therefore, lower-priced funds are likely to attract considerable interest from both retail and institutional investors.
The trading of Ethereum ETFs will coincide with a decline in Ethereum reserves held on exchanges. This indicates that despite the ongoing crypto sell-off, Ethereum’s ecosystem remains robust. The network currently has over $108.95 billion in total value locked (TVL) and nearly $80 billion in stablecoins. Additionally, it has collected fees amounting to $1.65 billion, surpassing the combined fees of Tron and Bitcoin.
Analysts are optimistic about Ethereum’s price, with some top crypto analysts predicting a bullish breakout. Rekt Finance highlighted that Ethereum’s open interest in the futures market is rising, indicating institutional demand ahead of the ETF approval. They also noted that Ether is a deflationary asset, continuously reducing its supply over time. Consequently, they expect ETH to surge after the ETF approval, experience a consolidation or pullback as Grayscale Ethereum Fund holders shift to cheaper options, and then resume its bullish trend.
Another prominent figure in the crypto community, Crypto Rover, with over 700k followers, pointed out that Ethereum has formed a descending channel resembling a falling wedge pattern. Typically, this pattern supports upside potential, leading to a breakout. Therefore, it is anticipated that the breakout could occur in the near future.