NewsletterWhy Ethereum Price Is Stalling Despite ETH ETF Approval
Highlights
- Unlike Bitcoin’s digital gold narrative, Ethereum's narrative is abstract, making it difficult for traditional finance to support the spot ETH ETF.
- Despite the spot ETH ETF approval, the lack of staking service could be another reason preventing investors from investing in Ether.
- The spotlight is on Bitcoin due to Donald Trump’s speech on Saturday at the Bitcoin conference.
Ethereum price performance has been underwhelming for quite some time. The year-to-date return for ETH is the worst when compared with top cryptocurrencies such as Bitcoin, Solana, and Ripple. ETH is up only 38% in the past seven months despite the landmark approval of spot ETFs.
Ethereum Price Remains Grounded
Ethereum price crashed 12% since the spot ETF approval on July 23 and formed a temporary low at $3,087. Since then, ETH has bounced 6% and currently trades under $3,300. Despite the spot ETF being a massively bullish development, Ether prices have failed to react. Why?
But the three critical reasons for Ethereum’s lackluster performance are:
- Ethereum’s narrative is abstract; it is a world computer, which is a little hard to sell to the traditional finance bunch. But Bitcoin’s digital gold narrative resonates with older investors.
- Additionally, the spot Ethereum ETF lacks one key component—staking. The staking service has still not been approved by the SEC or concerned regulators, which could be the second reason investors might not be immediately interested in ETH.
- The third reason for ETH’s dampened performance is BTC, which has been in the spotlight for quite some time due to the upcoming keynote address from presidential candidate Donald Trump.
The Bitcoin conference could also clear up the ongoing rumors about a potential “National Strategic Bitcoin Reserve.”
Read more: Peter Schiff Blasts RFK Jr’s Bitcoin Buy Plan As ‘Vote-Buying’ Tactic
ETH Price Could Trigger Massive Rally Soon
As explained in Ethereum ETF article, ETH is following in Bitcoin’s footsteps, which crashed 19% after the spot Bitcoin ETF approval on January 10 and rallied 90% in the next five months to set up an all-time high. If history repeats, Ethereum price could be preparing for a massive rally.
The short-term outlook for Ethereum price looks bearish with a string of lower highs. One sign of relief is that ETH has not produced a lower low.
A sweep of the equal lows at $2,539 is the ultimate buying opportunity, especially if ETH repeats Bitcoin’s post-ETF rally. In such a case, the upcoming rally could propel Ether to the $4,000 psychological level. If the bullish momentum remains beyond the aforementioned level, Ethereum Price Forecast suggests Ether could attempt to retest the current all-time high of $4,868.
On the other hand, if Ethereum breaks the weekly support level at $2,539, it would invalidate the bullish thesis by producing a lower low on the higher timeframe. In such a case, ETH could drop as low as $2,000.
Frequently Asked Questions (FAQs)
1. Why is Ethereum's price not reacting positively to the spot ETF approval?
2. What is Ethereum's current price performance compared to other top cryptocurrencies?
3. Could Ethereum's price still trigger a massive rally despite its current underwhelming performance?
- Senator Tim Scott Floats December 17 and 18 For Crypto Market Bill Markup
- BlackRock CEO Larry Fink Admits He Was Wrong on Bitcoin as IBIT Hits New Milestone
- Crypto Platform Polymarket Relaunches in U.S. Following CFTC Approval
- December Fed Rate Cut Prospects Strengthen After ADP Shows Deepening Labor Market Weakness
- Trump-Backed World Liberty Financial to Roll Out RWA Products in January
- Dogecoin Price Holds $0.15: Bullish Reversal or Just a Temporary Bounce?
- Sui Price Surges 10% As Vanguard Group Adds SUI to Bitwise 10 Crypto Index
- Bitcoin Price Prediction: Will Next Bull Run Push BTC to $100,000?
- Pepe Coin Price Risks 80% Crash as Alarming Pattern Forms and 6.5T Inflows
- Chainlink Price Surges 20%: What’s Driving Massive Upswing?
- Solana Price Poised for 25% Rally as ETF Inflows Surge Past $650M
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
24 Hours volume
$23.61B
Market Cap
$375.59B
Max Supply
NA
Premium Partners
