Holding steady at the $2,860 support level, which it has done since early July, Ethereum (ETH) continues to show how strong it is. As a result of recent changes in Ethereum exchange-traded funds (ETFs), the cryptocurrency market has become more stable.
The most recent Deribit Insights study says that Ethereum is about to take off, and the approval of U.S. ETH ETFs is expected to have significant implications for the market. The story says that the strong support ETH has had since July is a sign of strong buyer demand, which could lead to a possible rise to $4,500.
ETF Approval Boosts Interest
The recent release of Ethereum ETFs has made the currency easier to get and more regulated, which has made the market feel better. Deribit says that the legal approval is likely to lead to more money and attention from institutions. This rising interest was clear on July 30, when net inflows of $33.6 million were seen across all nine-spot Ether ETFs.
New data from Nansen, on the other hand, shows a different direction. On July 31, almost $750 million was taken out of Ether ETFs on four of the five trade days. This change caused a short-term shift in the way trading worked. On July 30, Bitwise had more trades than BlackRock, but by July 31, BlackRock was back in first place.
As of August 1, BlackRock’s holdings made up 6.9% of its assets under management (AUM), up from 5.59% before. Even with the ETF boost, Ethereum’s price is still around $3,200, down from $4,000. It last went over that level on March 14. Recent events in geopolitics and a difference in the amount of money coming into ETFs compared to Bitcoin (BTC) ETFs seem to be affecting how people feel about the market.
Analysts say that the reason why Ethereum’s price didn’t see as much money coming in as Bitcoin’s was because the U.S. Securities and Exchange Commission (SEC) didn’t allow staking for ETH ETFs. Also, L2Beat data shows that the total value locked (TVL) in the Ethereum network is still 17.8 million, which suggests that the environment isn’t growing very fast.
