Ethereum Rebounds Over 2% as ETF Concerns Ease, Approaching $4000
After a significant surge last Monday, Ethereum traded sideways over the weekend. This consolidation phase is likely due to the realization that ETF issuers must wait for their S-1 registration statements to be approved before trading can commence, which could take weeks or even months. Currently, Ethereum’s price is stable above $3800, positioning itself for the next move.
In the latter half of May, Ethereum experienced a robust rally, rising from $2860 to $3862, a 35% increase. This surge was initially driven by positive market sentiment sparked by Bitcoin but was further boosted when the U.S. Securities and Exchange Commission (SEC) approved an Ethereum spot ETF.
Bloomberg ETF analyst James Seyffart predicts that the demand for Ethereum spot ETFs could reach 20% to 25% of the demand for Bitcoin spot ETFs. His analysis considers Ethereum’s current market size, which is approximately 30% that of Bitcoin.
Seyffart also highlighted some inherent limitations of Ethereum ETFs, including the inability to stake tokens and the lack of on-chain utility that could be leveraged through such financial products.
As a result, Ethereum’s price fluctuated significantly over the weekend, trading above $3600. If the support level holds, buyers might challenge the $4090 resistance level in the coming week or two. A potential breakthrough could accelerate bullish momentum, aiming for a target of $4500, followed by $4900.
Overall, the easing of ETF concerns and the stabilization above key support levels suggest that Ethereum could be poised for further gains in the near future.
