- Ethereum price increases slightly after long-awaited SEC approval of spot ETFs.
- Ethereum traders have lost $23.33 million to liquidation in the last 24 hours.
- Analysts expect the spot ETFs to bring more demand to the Ethereum market.
Ethereum’s recent price movements and SEC approvals have stirred significant interest among traders and analysts alike.
SEC Approval of Ethereum Spot ETFs: Market Reactions
The market value of Ethereum (ETH) registered only a modest uptick over the last 24 hours despite the SEC approval of eight spot Ethereum ETFs. At the last check, Ethereum traded at $3,742, representing a 2.76% increase from the previous day, although its weekly performance reflects a more substantial gain. In comparison, Bitcoin surged 4%, setting a daily high of $69,222, with a similar percentage growth over its weekly performance.
Initial Optimism and Subsequent Market Sentiment
Notably, in the build-up to the ETF approvals, Ethereum experienced heightened optimism. The asset soared by 40% to reclaim the $3,943 price point on Thursday, having traded at as low as $2,815 on May 1. Meanwhile, the positive sentiment surrounding Ethereum waned after ETF approvals. Data from market tracker Coinglass indicated that following the SEC’s approval of Ethereum spot ETF listings on May 23, ETH traders witnessed $80.3 million in long liquidations.
Impact on Traders and Market Dynamics
For context, a long position involves purchasing an asset with the expectation of selling it at a higher price in the future. As of the latest figures, traders betting against the Ethereum uptrend are now the ones mostly in losses. In particular, Ethereum shorts have lost $23.33 million in the last 24 hours, amid ETH’s 2.76% uptick.
Future Outlook and Expert Predictions
While Ethereum has yet to see substantial gains since the ETH approvals, industry experts remain confident that it will soon set new all-time highs. The anticipation surrounding the spot ETFs is expected to bring more demand to the Ethereum market, potentially driving prices higher in the near future.
Conclusion
The recent SEC approval of Ethereum spot ETFs has generated mixed reactions in the market. While initial optimism led to significant price surges, subsequent liquidations have tempered gains. However, the long-term outlook remains positive, with experts predicting that increased demand from the ETFs could propel Ethereum to new heights.
