Ethereum (ETH) is experiencing a price downturn reminiscent of Bitcoin’s post-ETF slump. Two days after the highly anticipated launch of U.S. spot ETH ETFs, the second-largest cryptocurrency has dropped by approximately 8%. While ETH has slightly recovered, trading above $3.2k, market observers are closely watching its trajectory.
Crypto analyst Croissant has drawn a striking parallel between ETH and BTC’s price movements following their respective ETF approvals. Based on this correlation, the analyst predicts a potential 20% drop for ETH in the next two weeks, followed by a substantial 90% rally, pushing the price to $6.5k by September.
However, other analysts caution against relying solely on historical correlations. While ETH might benefit from anticipated Fed rate cuts, its performance relative to Bitcoin is a growing concern. The ETHBTC ratio has declined significantly, raising questions about Ethereum’s attractiveness as a hedge.
The recent outflows from U.S. spot ETH ETFs, primarily driven by Grayscale’s ETHE, have added to the bearish sentiment. Nonetheless, some experts remain optimistic about a potential reversal, particularly if strong demand from U.S. investors emerges.
Also Read: Ethereum ETF Debut Dampened by $113M Outflows on Day 2, Grayscale Hemorrhages $811M
As the market digests the impact of the ETH ETF launch, investors are closely monitoring price movements and analyst opinions to make informed decisions. The coming weeks will be crucial in determining whether ETH will follow Bitcoin’s path to recovery or diverge from the established pattern.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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