Ether defies price correction predictions amid SEC approval of ETFs
The US Securities and Exchange Commission (SEC) finally gave ETH ETFs the green light to commence trading. Crypto research firm 10x Research suggests in its newsletter that an ETH price correction might be next in line.
Also read: What to expect when spot Ethereum ETFs start trading
Trading charts and data show that the second largest crypto by capitalization made significant price gains since the SEC simultaneously approved 9 spot ETH ETFs. The applications included the converted $9.3 billion Grayscale Investments trust.
Ether price picks up ahead of ETF trading
According to the 10X Research report, previous cases of similar approvals, including the Bitcoin future launch in December 2017, Coinbase listing in April 2021, or the recently launched spot Bitcoin ETFs in 2024, showed a price correction shortly after listing.
A similar price action is expected as ETH ETFs open for trading. However, Ether’s price gained a few points this morning and breached the $3,500 mark. The ongoing surge helped the token to regain some of the losses recorded over the last 30 days.
ETH is now up by 8% in the last 90 days outperforming Bitcoin (BTC) over the same period. Ether is trading at an average price of $3,519, at the press time. Its 24-hour trading volume spiked by 33% to stand at $21.08 billion. It holds a market capitalization of over $424 billion.
Bullish sentiments persist
Per data provided by Coinglass, the total ETH Futures open interest surged by over 4% in the last 4 hours. The OI stood at 4.33 billion ETH (approximately $15.29 billion). These numbers depict that traders are bullish and expect the same from the market.
Data recorded in the last 4 hours shows that $5.6 million worth of long and short positions set by traders on Ether price action got liquidated. More than $4.72 million (83%) of short bets got liquidated, suggesting traders expected a price correction but ETH price reacted in the opposite direction.
Also read: Is ENS a good investment?
The Ethereum ETF fillings process saw a progression on May 20 when the regulators asked exchanges to move ahead with their 19b-4 fillings. This move changed the approval probability completely as the ratings jumped from 25% to 75%.
On May 23, the SEC took the next step by approving exchange applications to list spot Ether ETFs. This cleared the pathway for trading approval and encouraged investors to show interest in the crypto.
The last week of May recorded an instant surge of 500K Ether in Open Interest (OI) as bulls tried to take full control of the positive update. The report mentioned that ETH futures OI jumped from $8.8 billion to $13 billion during that period while ETH price took off from $3,065 to $3,959.
