ETH Price Drops Despite Ethereum ETF Approval

During the turbulent period of ETH price swings before the ETF approval, an Ethereum whale hurriedly sold 7,900 ETH from their reserves. Additionally, Ethereum saw over $130 million in long positions liquidated.

Azcnews Eth Price Drops Despite Ethereum Etf Approval

Following the approval of eight spot Ethereum ETFs by the U.S. Securities and Exchange Commission (SEC) on Thursday, May 23, the price of Ether (ETH) has held steady at $3,800, showing no significant signs of an upward trend.

Despite this, ETH has seen a substantial rally of over 30% in the past week. Investors are currently adopting a cautious stance, watching closely to see if this development will result in a “sell-the-news” event.

Ethereum (ETH) Price Shows Major Volatility

ETHUSDT
ETHUSDT

Leading up to the U.S. SEC’s announcement of its decision on the spot Ethereum ETF approval, ETH prices exhibited significant volatility. In the tense hour before the official approval, ETH initially dropped to $3,500 around the time of the traditional U.S. market close.

However, it then surged to nearly $3,900 upon the emergence of initial unconfirmed reports suggesting approval, eventually settling above $3,800 after confirmation. Amid these large price swings, a whale sold a substantial 7,900 ETH holdings worth $29 million.

During this turbulent period, liquidations of leveraged crypto derivative positions surged to over $350 million throughout the day, marking the highest figure since May 1, according to CoinGlass data.

Related: SEC Officially Approves 8 Ethereum Spot ETFs

Most of these liquidated positions were longs, anticipating price increases, totaling approximately $250 million. This indicates that traders who had overextended themselves with leverage were caught off guard by the abrupt price drop. ETH traders were particularly affected, with $132 million in liquidations.

Lookonchain
Lookonchain

ETH Price Action Ahead

The approval of the spot Ethereum ETFs could drive more than $500 million in inflows, as predicted by analysts. However, this might take some time to materialize and initiate an uptrend.

Several on-chain indicators suggest that Ethereum could easily establish a base above $4,000 and continue rallying to $5,000-$6,000 by August this year.

While the approval of Bitcoin ETFs led to strong institutional inflows, it will be interesting to see if the launch of Ether ETFs will lead to greater institutional adoption.

(7 votes)

4.6/5

(7 votes)
  1. Avatar of Muhammad
    Muhammad

    Hi

  2. Avatar of Muhammad
    Muhammad

    Please
    I thought I made money here

  3. Avatar of Best
    Best

    Hi

  4. Avatar of
    Anonymous

    Hi

Comments are closed.

Latest

How To Participate In The Trump Wallet Airdrop

Airdrops | Editor Choice

How to Participate in the Trump Wallet Airdrop

Join the Trump Wallet airdrop, a cryptocurrency wallet provided by Magic Eden, which is airdropping 1 million TRUMP tokens to participants.

Donald Trump’s Company Files To Launch Spot Bitcoin Etf

News | Bitcoin | Editor Choice

Donald Trump’s Company Files to Launch Spot Bitcoin ETF

Truth Social, Donald Trump's social media platform, has made headlines by filing to launch a spot Bitcoin ETF, marking a bold move into the digital finance space as the crypto market heats up again.

Team Continues To Deposit $trump Into Exchanges

Memecoin | Editor Choice

Team continues to deposit $TRUMP into exchanges

This morning, a wallet allegedly belonging to the development team of the memecoin $TRUMP deposited 4.17 million $TRUMP tokens, equivalent to $46.97 million USD, onto major exchanges.

Pi Network Tops The Rankings Of Crypto Applications

Editor Choice | Pi Network

Pi Network tops the rankings of crypto applications

According to a recent survey from the Zypto VISA card, Pi Network has unexpectedly risen to the top position in terms of deposit frequency, surpassing DASH, USD1, and XRP.

Is Bitcoin Preparing For The Next Wave Of Institutional Capital

News | Bitcoin | Editor Choice

Is Bitcoin Preparing for the Next Wave of Institutional Capital?

Bitcoin is on the verge of attracting a massive wave of institutional capital, as global financial advisors gain easier access to the digital asset – setting the stage for a potential supply shock and a powerful price rally.