Recently, Ethereum (ETH) came close to reaching the $4,000 mark, sparking renewed enthusiasm in the market. This surge can be attributed to the US Securities and Exchange Commission (SEC) approving Ethereum ETF applications by major asset managers. As a result, digital asset investment products have seen an influx of $2 billion, leading to a five-week streak of inflows amounting to $4.3 billion.
Moreover, trading volumes in exchange-traded products (ETPs) have surged to $12.8 billion for the week, marking a 55% increase from the previous week. Various providers have witnessed inflows, signaling a shift in sentiment. Established providers have also experienced a decrease in outflows, reinforcing the positive market sentiment.
Despite the positive developments, Ethereum’s price has struggled to maintain its bullish momentum, failing to reach its yearly high of $4,100. The price dropped to as low as $3,577 on Friday. However, there has been a notable increase in Ethereum addresses holding more than 10,000 ETH, indicating a significant surge in buying pressure.
Market analysts have differing opinions on Ethereum’s future price action. Some, like “Trader Tank,” predict a drop to $3,500 with the potential for a bullish reversal upon reclaiming the $3,700 level. On the other hand, crypto analyst Lark Davis points out that Ethereum’s supply on exchanges is at an eight-year low, suggesting that the upcoming ETFs could cause a “massive supply shock” leading to a substantial price increase.
As Ethereum’s price remains uncertain, investors and analysts are closely monitoring the market movements. The question of whether Ethereum will break above $4,000 or retest lower support levels at $3,500 lingers in the minds of market participants. The impact of ETF approvals on Ethereum’s price and market dynamics will continue to unfold in the coming weeks.
