Since the first spot Ether exchange-traded funds (ETFs) opened in July, the price of Ether has dropped sharply, by 26%. Cointelegraph says the price of the coin was $2,572 at 10:11 a.m. UTC on August 19.
Many people thought that the ETFs would make Ether more valuable, but according to Farside Investors, the start has caused over $420 million worth of selling. This major flow of funds out of the market has made it go down, which is very different from when Bitcoin’s ETF first came out, which brought a lot of new funds into the market.
Ether Faces Selling Pressure
Besides the selling pressure from ETFs, the amount of ETH in circulation has grown by 60,555 ETH, which is worth more than $155 million, since the ETFs started dealing. According to Ultrasound.funds, this rise in quantity has made ETH price drop even more.
ETH value has not gone up as much as was expected after Ethereum’s major update, called the Dencun upgrade, which was meant to lower transaction fees and make the network more scalable. The cryptocurrency’s price has been going down since it was introduced on March 13.
“Despite the approval of Ethereum ETFs, the price of $ETH has been struggling since the Dencun upgrade. ETH supply has increased by more than 197,000 ETH, and its price has fallen by 35%.”
But there may be hope for a comeback in the future. Ted, a famous crypto trader, says that patterns in past charts show that ETH could break out in the first quarter of 2025.
“The consolidation breakout will happen in November/Dec 2024, while the parabolic run will start in Q1 2025.”
