Ethereum’s price showed a subdued reaction to the launch of the first-ever spot Ethereum exchange-traded funds (ETFs) in the United States. Despite this, traders remain optimistic, predicting that Ether could reach new all-time highs in the coming months.
ETH/USD 1-hour chart. Source: TradingView
Analysts suggest that Ether ($3,415) could rally significantly following the US Securities and Exchange Commission’s (SEC) approval of the ETFs. Major issuers, including BlackRock, Fidelity, 21Shares, Bitwise, Franklin Templeton, VanEck, and Invesco Galaxy, began trading the spot ETH ETFs on July 23. Within just 15 minutes, the ETFs saw an impressive trading volume of $120 million.
High Expectations and Initial Performance
Michaël van de Poppe, founder and CEO of trading firm MNTrading, highlighted the substantial initial trading volume, comparing it to Bitcoin’s ETF debut. He believes that the Ethereum ETF is “heavily undervalued” and anticipates a strong performance, with Ether potentially reaching new highs within the next one to two months.
Fellow trader Daan Crypto Trades described the initial flows as “decent,” predicting increased volatility in the crypto market. He emphasized the importance of Ethereum holding above $3,350 to maintain its uptrend, targeting a resistance zone between $2,672 and $3,730.
Market Sentiment and Future Outlook
Crypto investor Alessa Mutto expressed bullish sentiments, expecting Ethereum and ETFs to experience significant growth over the next few years. However, Mutto acknowledged that future inflows into spot Ethereum would ultimately determine its price trajectory.
ETH/USD four-hour chart. Source: Daan Crypto Trades
Impressive Trading Volumes
Within the first 90 minutes of trading, spot Ethereum ETFs accumulated a combined trading volume of $361 million, according to Bloomberg Senior ETF analyst Eric Balchunas. He compared this to the initial performance of spot Bitcoin ETFs, which began trading in the US on January 11. While Ethereum’s initial volume was about half of Bitcoin’s on its first day, Balchunas noted that this still exceeded expectations.
Source: Eric Balchunas
US-based spot Bitcoin ETFs have been hailed as the most successful ETF launch ever, with a cumulative trading volume of $300 billion in the first six months and total assets under management reaching $62.12 billion as of July 22.
As the market continues to monitor the performance of these new ETFs, traders and analysts remain hopeful that Ethereum will achieve significant gains in the near future.
