Ethereum Price: 2 Reasons Why ETH Price is Rising ?

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Ethereum Price Soars Amid $40M Influx, Will The Momentum Sustain? – Crypto News

Published

2 years ago

May 31, 2024

Dripp

Ethereum price has regained momentum following a period of volatile trading. The recent surge in its price is fueled by heightened anticipation after the U.S. SEC’s unexpected approval of the Spot Ethereum ETF.

Besides, this regulatory nod has also sparked significant inflows into Ethereum exchange-traded products globally, raising questions about the sustainability of this bullish trend.

ETH Sees Records Inflows Following SEC Approval

Last week, Ethereum experienced a notable influx of $40 million into existing exchange-traded products, marking the largest inflow since March. CoinShares, a prominent crypto-research firm, highlighted this development in a recent report.

Notably, the surge is attributed to the SEC’s surprising decision on May 23 to approve Spot Ethereum ETFs for eight issuers in the U.S. This move has significantly boosted market optimism, as witnessed by the recent market trends.

However, the approval process is still ongoing, with the 19b-4 forms approved but the S1 forms pending review. Once finalized, these ETFs will be eligible for trading on stock exchanges, which could further impact Ethereum’s price.

This influx of investment reflects growing confidence among investors. The robust inflow into U.S. Spot Bitcoin ETFs this year had a similar impact, suggesting that the market is now anticipating a comparable scenario for Ethereum. As the Ether ETF trading launch approaches, investor sentiment remains bullish.

Also Read: XRP Price To Rally 500% As XRP/BTC Witnesses Reversal, Analyst Predicts

Ethereum Price & Potential Future Performance

The recent inflows have sparked discussions about their potential impact on Ethereum’s price. Analysts are debating whether this momentum will be sustained or if it is a temporary reaction to the regulatory news. However, the $40 million surge indicates strong market interest and belief in Ethereum’s future performance.

Despite that, some have argued that the path to sustained growth may face challenges. It’s worth noting that the SEC’s approval process while moving forward is not yet complete.

According to Ark CEO Cathie Wood, the recent regulatory nod for the Ethereum ETF is mainly due to the upcoming U.S. Presidential election and the prevailing pro-crypto sentiment that could impact the election results. Notably, the pending review of S1 forms means that the actual trading of these ETFs might still be weeks away. This delay could impact investor sentiment and price stability in the short term.

However, as of writing, Ethereum price was up 1.45% and traded at $3,783.37, after touching a 24-hour high of $3,823.64. On a monthly basis, the second-largest crypto by market cap rose nearly 25%, while noting a weekly gain of around 3%.

According to CoinGlass data, Ethereum Futures Open Interest rose 1.45% to $16.70 billion, while its Options Open Interest advanced 1.63% to $6.38 billion. Notably, the surge in the Open Interest also reflects a bullish sentiment hovering over the market currently.

Also Read: Matter Labs’ ZK Trademark Tussle Clashes With Ethereum’s Core Principles, Here’s All

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