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Ethereum’s Muted Response to ETF Approval: A Calm Before the Storm?

Ethereum’s Muted Response to ETF Approval: A Calm Before the Storm?

CoineditionCoinedition2024/05/25 13:49
By:Abdulkarim Abdulwahab
  • Ethereum price increases slightly after long-awaited SEC approval of spot ETFs.
  • Ethereum traders have lost $23.33 million to liquidation in the last 24 hours.
  • Analysts expect the spot ETFs to bring more demand to the Ethereum market.

The market value of Ethereum (ETH) registered only a modest uptick over the last 24 hours despite the SEC approval of eight spot Ethereum ETFs.

At the last check, Ethereum traded at $3,742, representing a 2.76% increase from the previous day, although its weekly performance reflects a more substantial gain. In comparison, Bitcoin surged 4%, setting a daily high of $69,222, with a similar percentage growth over its weekly performance.

Notably, in the build-up to the ETF approvals, Ethereum experienced heightened optimism. The asset soared by 40% to reclaim the $3,943 price point on Thursday, having traded at as low as $2,815 on May 1.

Meanwhile, the positive sentiment surrounding Ethereum waned after ETF approvals. Data from market tracker Coinglass indicated that following the SEC’s approval of Ethereum spot ETF listings on May 23, ETH traders witnessed $80.3 million in long liquidations.

For context, a long position involves purchasing an asset with the expectation of selling it at a higher price in the future. As of the latest figures, traders betting against the Ethereum uptrend are now the ones mostly in losses. In particular, Ethereum shorts have lost $23.33 million in the last 24 hours, amid ETH’s 2.76% uptick.

Ethereum’s Muted Response to ETF Approval: A Calm Before the Storm? image 0 Ethereum’s Muted Response to ETF Approval: A Calm Before the Storm? image 1 Source | Coinglass

While Ethereum has yet to see substantial gains since the ETH approvals, industry experts remain confident that it will soon set new all-time highs.

Chris Donovan, COO of the NEAR Protocol, expressed optimism for the crypto industry in the wake of the Ethereum spot ETF approval. Donovan believes that the approval is a strong endorsement for the entire crypto sector and could lead to significant and improved demand entering the market.

The approval of Ethereum spot ETFs marks a pivotal moment for the cryptocurrency industry, signaling growing acceptance among institutional investors. Even as the market adjusts to the surprise SEC approval, the optimism expressed by industry figures like Chris Donovan suggests that this could be just the beginning of Ethereum’s next bull run.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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