Analysts Predict ETH Pullback Despite SEC Approval of Official Ethereum ETF List

Ethereum prices fell more than 3% from an intraday high of $3,540 on July 22 to a low of $3,425 during the Asian trading session on Tuesday morning.

They’ve recovered slightly since then, but analyst ‘Kaleo’ predicted there’s a “high probability we’ll see some sort of pullback after the spot ETF launches.”

He predicted that the asset would drop below $2,800 in a range minimum before the inevitable price discovery.

#Ethereum / $ETH

We still see a high probability that we will see some sort of pullback after the launch of the Spot ETF.

We are still early enough in this bull market that shorting is a greedy play if you are bullish on a higher time frame (ETH hasn’t even hit a new ATH… pic.twitter.com/iitD2l7QCe

— CALEO (@CryptoKaleo) July 22, 2024

Launch of Ethereum ETF

On July 22, the Securities and Exchange Commission officially approved the listing of several spot Ethereum ETFs. ETF issuers are making final adjustments before their products go on sale in the US on July 23.

CEO and founder of Intuition, an Ethereum-based data authentication protocol, Billy Luedtke commented: “The approval of the ETH ETF marks an important milestone, legitimizing Ethereum and providing a gateway for institutional investors participate”.

Meanwhile, Coinbase stated that by increasing the use of Ethereum, “localized ETH ETF investors will help advance the utility of Ether and contribute to the development of the overall crypto ecosystem.”

Bloomberg senior ETF analyst Eric Balchunas noted that the Ethereum ETF race has already begun with a transfer from the Grayscale ETHE fund to its “ETH” mini-fund on July 23.

The Grayscale Ethereum Mini Trust will start with $1 billion in assets and a low-end 15 basis point fee. “This is a new variable in this race that we didn’t have in the BTC (ETF) race,” he added.

Current ETHE shareholders will receive a pro rata distribution of shares from their new Mini Trust on 31 July.

The ETF ETF race has already begun with a transfer of $ETHE to his mini-self = $ETH it will start life at $1 billion and a low-end 15bp rate. This is a new variable in this race that we didn’t have in the btc race. https://t.co/7v6kh8Kw5Q

— Eric Balchunas (@EricBalchunas) July 22, 2024

On July 22, the world’s largest asset manager, BlackRock, issued a statement about Ethereum and its new iShares Ethereum Trust ETF (ETHA), which was a big endorsement of the asset saying:

“Ethereum’s appeal lies in its decentralized nature and its potential to drive digital transformation in finance and other industries.”

Here’s BlackRock’s launch of Ether on the rules via @JayJacobsCFA: “While many see bitcoin’s key appeal in its scarcity, many find ethereum’s appeal in its utility…you could think of ethereum as a global platform for applications that run without decentralized intermediaries ” $ETHA pic.twitter.com/ffyglfSTiB

— Eric Balchunas (@EricBalchunas) July 22, 2024

In addition, rival asset managers are already launching their ETH ETF announcements. On July 23, Bitwise published an announcement for its prospectus stating that it will donate 10% of Bitwise Ethereum (ETHW) ETF profits to the development of the Ethereum open source protocol.

ETH Price Outlook

Ethereum was trading up 1.5% on the day at $3,484 at the time of writing. The asset has only managed to return to resistance around $3,500 during last week’s rally and failed to approach the 2024 high of just over $4,000 in March.

However, if the price action mirrors that of BTC, there could be a new all-time high for ETH a few months after the ETFs have been trading.

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