Ethereum
Ethereum Price Skyrockets Amid $40 Million Inflow, Will the Momentum Hold?
Ethereum price has regained momentum after a period of volatile trading. The recent rise in its price is fueled by increased anticipation after the unexpected approval of the Spot Ethereum ETF by the US SEC.
Additionally, this regulatory nod also triggered significant inflows into Ethereum exchange-traded products globally, raising questions about the sustainability of this uptrend.
ETH Sees Record Inflows After SEC Approval
Last week, Ethereum saw a notable inflow of $40 million into existing exchange-traded products, marking the largest inflow since March. Coin Sharesa leading crypto research company, highlighted this development in a recent report.
This increase is notably attributed to the surprising decision of the SEC, on May 23, to approve Spot ETF Ethereum for eight transmitters in the United States. This move has significantly boosted market optimism, as evidenced by recent market trends.
However, the approval process is still ongoing, with Forms 19b-4 approved but the S1 forms while waiting for the exam. Once finalized, these ETFs will be eligible for trading on exchanges, which could further impact the price of Ethereum.
This influx of investments reflects growing investor confidence. The massive influx to US Spot Bitcoin ETF this year had a similar impact, suggesting that the market now expects a comparable scenario for Ethereum. As the Ether ETF trading launch approaches, investor sentiment remains optimistic.
Read also: XRP Price to Surge 500% as XRP/BTC Witnesses Reversal, Analyst Predicts
Ethereum Price and Potential Future Performance
Recent capital inflows have sparked discussions about their potential impact on the price of Ethereum. Analysts question whether this dynamic will be sustainable or whether it is a temporary reaction to regulatory news. However, the $40 million surge indicates strong market interest and confidence in Ethereum’s future performance.
Despite this, some have argued that the path to sustainable growth may face challenges. It should be noted that the SEC approval process is not yet complete.
According to Cathie Wood, CEO of Ark, the recent regulatory agreement for the Ethereum ETF is mainly due to the upcoming US presidential election
and the prevailing pro-crypto sentiment that could impact election results. Notably, the ongoing revision of the S1 forms means that actual trading of these ETFs could still take a few weeks. This delay could impact investor confidence and price stability in the short term.
However, at the time of writing, Ethereum Price was up 1.45% and trading at $3,783.37, after touching a 24-hour high of $3,823.64. On a monthly basis, the second-largest crypto by market cap rose nearly 25%, while posting a weekly gain of around 3%.
According to CoinGlass data, Ethereum Futures Open Interest rose 1.45% to $16.70 billion, while its Open Interest options rose 1.63% to $6.38 billion. Notably, the rise in Open Interest also reflects a bullish sentiment currently hovering over the market.
Additionally, a recent Scopescan report reveals significant Ethereum whale activity, further fueling potential bullish momentum for the ETH price. The report notes that an Ethereum whale withdrew 4.2K ETH today, worth $15.8 million.
Additionally, the same whale accumulated 8.3K ETH in the last three days, worth around $31 million. The report notes that this accumulation comes as the Ethereum ETF receives a regulatory green light from the US SEC, indicating strong bullish sentiment from major investors.
Read also: Matter Labs’ ZK Mark Fight Conflicts With Ethereum Fundamentals, Here’s All