Ethereum has such an epic positive news, why did it still fall? Let’s listen to Brother Chong’s explanation today!
First of all, the Ethereum ETF that everyone has been paying attention to and worrying about recently has come to an end yesterday at 9:30! The SEC officially approved an application from eight Ethereum ETFs! Please see the picture below!
The main reasons for Ethereum’s recent volatility are as follows!
1. The profit-taking at the bottom near 2800, 2900, and 3000 is waiting for yesterday's positive news and the inflow of funds from institutional ETFs, that is, short-term players are constantly selling, including Chong Ge, who mentioned bottom-fishing near 3000 many times during the live broadcast, and the short-term is also looking at the 3400-3600 range! The flight of funds in the Ethereum band is also part of the selling pressure!
2. Grayscale Ethereum Fund ETHE saw an outflow of $484 million on the first day, of which a small amount ($15 million) flowed into the Grayscale Ethereum Mini Fund after the management fee was reduced. The current Ethereum spot ETF can be said to be similar to the situation of the Bitcoin spot ETF after it was just approved. Grayscale's GBTC has been under net outflow selling pressure for a long time due to profit-taking and the need to switch to lower fees.
At present, ETH may also replicate this situation for a period of time, and the price may fall further or continue to fluctuate. The selling pressure when the Bitcoin spot ETF was first approved lasted for about two weeks before the overall net assets turned positive from net outflow. This time, we will see whether the situation of the Ethereum spot ETF will be shorter or last longer, which is worth our continued attention. (In simple terms, there needs to be a turnover between hedge institutions and funds)
3. Many hedge institutions also deployed ETH spot and futures in this wave. I won’t explain in detail how to deploy them. I can only say that this wave of institutions won a lot! CME has reaped a lot of benefits in this wave!
4. The negative impact on the market is still ongoing, and the global economy has yet to be activated. The German government has just sold out its BTC, and now Mt. Gox has come to repay its debts. Since July 5, Mt. Gox has transferred 52,549 BTC (US$3.31 billion) to Bitstamp, Kraken and Bitbank for repayment. The market also needs some time to digest this selling pressure!
It has been 10 years since Ethereum launched its ICO on July 22, 2014. At that time, 1 BTC could be exchanged for 2,000 ETH, but now it can only be exchanged for less than 20 ETH.
Today, Ethereum has become the world's second largest cryptocurrency by market value, second only to Bitcoin, with a market value of $417.597 billion. It is also the largest smart contract platform.
Ethereum's growth is beyond imagination, and the Ethereum ETF is officially listed on the US stock market. This marks another milestone for cryptocurrency. When the recent ETH bubble melts away, ETH will definitely dazzle everyone's eyes! ETH's long-term target of 4800 remains unchanged!
I still say that Ubicoin is more practical. Manage your positions well and don’t hold too many! #美国以太坊现货ETF开始交易
