Despite the launch of the highly anticipated Ethereum (ETH) spot Exchange-Traded Fund (ETF), the price of Ethereum has shown little reaction, remaining relatively stable. Many expected the ETF launch to be a significant market catalyst, but analysts predict that Ethereum’s pricing trends may follow a similar path to Bitcoin’s after its ETF debut, which did not result in an immediate price surge.
ETH’s $107M First-Day Inflow Overshadowed by BTC’s $655M
The Ethereum spot ETF, which recently began trading, saw a net inflow of $107 million on its first day. This amount is significantly lower compared to the explosive debut of the Bitcoin ETF, which attracted a massive $655 million on its first day. However, the ETH ETF experienced a notable $484 million outflow in ETHE.
The lower inflow volume of Ethereum ETFs could be contributing to increased volatility in the Bitcoin market. Over the past 24 hours, the price of BTC has been approaching $67K, with Bitcoin options showing higher volatility compared to Ethereum options.
Furthermore, market data provider Kaiko reported that while spot Ethereum ETFs had over $1 billion in trade volume on their debut, trading volumes for spot ETH on centralized exchanges remained relatively unchanged.
Despite the slow start, experts remain optimistic about Ethereum’s future. Similar to Bitcoin’s historical performance, where its price reached an all-time high two months after its ETF launch, there is a strong belief in sustained institutional interest in Ethereum, potentially leading to a gradual increase in price toward previous all-time highs.
Additionally, there has been a significant shift in trading activity as the volume of ETH traded relative to Bitcoin increased from 22% to 41%, indicating a surge in activity within ETH markets. Unlike the significant inflows seen in Bitcoin ETFs, the Ethereum ETF reflects broader market trends.
What’s Next For ETH Price?
Ether (ETH) surpassed the 50-day SMA at $3,500 but faced weak demand at higher levels, resulting in a bearish correction below the 0.023 Fib level. The price is currently consolidating around $3,400, trading at $3,405, down over 1.6% in the last 24 hours.
Bears are currently attempting to push the price below the 200-day EMA, which could lead to a decline towards $3,170, a critical level for bulls to defend. If breached, the ETH/USDT pair may drop to $2,800.
To prevent this decline, bulls need to protect the moving averages and push the price above $3,600, potentially setting the stage for a rally towards the resistance zone between $4,000 and $4,095.
At present, the RSI level is below the midline, indicating that bears are currently in control of the trend.
