$ETH ETH Price Drops Despite Ethereum ETF Approval

During the turbulent period of ETH price swings before the ETF approval, an Ethereum whale hurriedly sold 7,900 ETH from their reserves. Additionally, Ethereum saw over $130 million in long positions liquidated.

Following the approval of eight spot Ethereum ETFs by the U.S. Securities and Exchange Commission (SEC) on Thursday, May 23, the price of Ether (ETH) has held steady at $3,800, showing no significant signs of an upward trend.

Despite this, ETH has seen a substantial rally of over 30% in the past week. Investors are currently adopting a cautious stance, watching closely to see if this development will result in a “sell-the-news” event.

ETH Price Action Ahead

The approval of the spot Ethereum ETFs could drive more than $500 million in inflows, as predicted by analysts. However, this might take some time to materialize and initiate an uptrend.

Several on-chain indicators suggest that Ethereum could easily establish a base above $4,000 and continue rallying to $5,000-$6,000 by August this year.

While the approval of Bitcoin ETFs led to strong institutional inflows, it will be interesting to see if the launch of Ether ETFs will lead to greater institutional adoption.