After the approval of the Ethereum ETF, the price of ETH did not rise further. According to crypto analysts, there are two explanations for this. Just before the news, Ethereum fell 3.4% and then rose 5% after the Securities and Exchange Commission (SEC) announcement.

Few new buyers

Popular analyst Zach Rynes has a simple but clear explanation for the lack of positive price action: “Anyone who wanted to buy at the approval has already done so.”

Ethereum already rose by 29% over the past week, after it became known that there was a high chance of approval.

Although the ETFs have been approved, they are not yet ready for launch. This also requires an approved S-1 document, which discusses the financial health of a company, as well as the risk profile and the securities they want to offer.

Analysts say this could take weeks or months. Gabriel Shapiro thinks it is a political game and does not expect approval for the S-1 documents from the publishers in the near future.

Waiting for the launch

Now we have to wait for the launch of the Ethereum ETFs. Rynes thinks the next big price move for Vitalik Buterin’s coin will happen then.

“The ETFs have not yet been launched, so the new capital still has to come,” Rynes said.

“We expect a huge inflow in the first week, possibly even in the billions,” said crypto research firm Second Mountain.

However, price explosions are no guarantee. For example, the Bitcoin price fell 15% after the Spot Bitcoin ETFs were approved on January 10. It ultimately took 30 days for the price to explode by 30% to $51,870.

Trade €10,000 for free and get a 10 euro bonus

Do you want to enter the crypto world and perhaps buy Ethereum or another crypto? Then grab your chance now with this exclusive offer! Thanks to a special deal between Newsbit and Bitvavo, one of the most accessible and user-friendly crypto exchanges in Europe, our readers receive an exclusive offer.

Create an account with Bitvavo via the button below and receive a welcome gift of 10 euros completely free. And that’s not all – you also don’t pay trading fees on your first 10,000 euros in transactions. Register now!


Leave a Reply

Your email address will not be published. Required fields are marked *