👀👀Price Recession Continues After Ethereum ETF Launch: What's the Reason? 👀👀
Ethereum's price did not register a significant rise during the first few days, in line with the initial $1.112 billion in ETF trading volume and high excitement. Impressive inflows from BlackRock's ETHA ETF ($266.5 million) and Bitwise's ETHW ETF ($204 million) demonstrated strong institutional interest in Ethereum. However, there was strong selling pressure in the market due to withdrawals from Grayscale's ETHE, and the remaining net inflow of $590 million attempted to offset this.
There could be several reasons for this sudden price change. First, the huge excitement and speculation surrounding the launch of Ethereum ETFs may have led to “buy-sell” behavior. Investors may have accumulated Ethereum prior to the ETF announcement and therefore released their holdings to the market. Second, although ETF introductions increased institutional interest, entry of new retail investors into the market remained limited, which is notable.
While institutional entries are significant, the overall sentiment of the market remains cold as retail participation is lacking. For the bull trend to continue, it is important to balance corporate investments with retail participation. Additionally, the dynamics of the overall cryptocurrency market should also be taken into account.
After Bitcoin experienced a similar situation, it made significant inflows and rose to almost $70,000. A similar scenario can be seen for Ethereum if institutional investors sell enough. It will be important to see whether the market has enough liquidity to withstand this selling pressure.
My dear friends, do not spare your free support. I am trying to bring such news to you instantly. My only request from you is if there is anyone who still does not follow me, I would be happy if they follow me.Do not forget to like my articles and posts. Thank you.
