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Will ETH Price Increase Following the Launch of ETFs?
Ethereum's price and popularity surged after the announcement of Ethereum ETFs. However, the second quarter was challenging, with unprofitable performance. Data from Token Terminal shows that Ethereum struggled with revenue generation. Despite this, interest in ETH remains high.
🟢Recent Developments
▫️ETFs Approved: On May 23, Ethereum ETFs got the green light in the US.
▫️Supply Tightening: Over $3 billion worth of Ethereum was withdrawn from centralized exchanges, reducing ETH reserves by 797,000 (about $3.02 billion) from May 23 to June 2.
▫️Low Exchange Supply: ETH supply on exchanges is at its lowest in years, at only 10.6%.
🟢Potential Price Impact
▫️Increased Demand: The reduced supply and increased investor demand could drive ETH prices to new all-time highs (ATH).
▫️Grayscale Concerns: The $11 billion Grayscale Ethereum Trust (ETHE) might influence ETH prices, similar to the Grayscale Bitcoin Trust (GBTC) which saw significant outflows after approval.
🟢Current Performance
▫️Price: ETH is trading at $3,833.59, up 1.19% in the past 24 hours.
▫️Investor Behavior: Both whales and retail investors have slightly reduced their holdings, taking profits as prices rise. This hasn't significantly impacted the price.
Stay tuned for more crypto insights! 👍
Disclaimer: This is not financial advice. Always do your own research.
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