Ethereum
ETH price struggles to recover even after Ethereum ETF approval, sell news soon?
Following the approval of eight spot Ethereum ETFs According to the United States Securities and Exchange Commission (SEC) on Thursday, May 23, the price of Ether (ETH) remained stagnant at $3,800, showing no significant signs of an upward trend.
Despite this, ETH has seen a notable rally of over 30% over the past week. Investors are currently taking a cautious stance, observing whether this development will result in a sell-off event.
Ethereum (ETH) Price Shows Major Volatility
Before the US SEC announced its decision to spot the approval of the Ethereum ETF, the ETH Price witnessed crazy fluctuations. During the tense hour leading up to official approval, ETH initially fell to $3,500 at the time of the traditional US market close.
Subsequently, it surged near $3,900 following the emergence of early unconfirmed reports suggesting approval, eventually settling above $3,800 after confirmation. Amidst these massive price swings, it turns out that one whale sold a staggering 7,900 ETH, worth $29 million.
After $ETH abandoned, a whale panic sold 7,921 $ETH at a price of 29.7M $USDT for $3,754.
The whale is a user of https://t.co/ZZPnpTmYqjand his $ETH was removed from https://t.co/ZZPnpTmYqj.https://t.co/CaE9aRb4XR pic.twitter.com/Pbjlhsw4Pi
– Lookonchain (@lookonchain) May 23, 2024
During this turbulent episode, liquidations of leveraged crypto derivatives positions soared to over $350 million throughout the day, marking the highest figure since May 1, according to CoinGlass data.
The majority of these liquidated positions were long positions anticipating price increases, totaling approximately $250 million. This indicates that traders who had overused their leverage were surprised by the sharp price drop. Of those affected, ETH traders were hit the hardest, with $132 million in liquidations.
ETH Price Action Coming?
Approval of Ethereum spot ETFs could generate more 500 million dollars capital inflows as analysts predict. However, it might take some time to realize and restart the uptrend.
Several on-chain indicators have highlighted that Ethereum can easily form a base above $4,000 and continue to climb between $5,000 and $6,000 until August this year.
Although the approval of Bitcoin ETFs has led to strong institutional inflows, it will be interesting to see if the launch of the Ether ETF could lead to greater institutional adoption.