Ethereum Analyst Thinks Prices Will Be Faster After Spot ETF Approval: Here’s Why

Ethereum slips after printing higher prices over the weekend. Considering the price action, the coin is up about 5% from last week’s low but is still trending below the all-important resistance at $3,700.

Although ETH holders and traders are up, prices should close firmly above this closing level, paving the way for more gains in the short to medium term.

Will Prices Fall After You Start Trading the Spot Ethereum ETF?

The cause for optimism follows the swift move by the United States Securities and Exchange Commission (SEC) to approve the country’s first Ethereum exchange-traded fund (ETF).

Following the encouraging events in May, when the agency approved all 19b-4 forms, the product could be live and accessible to investors and institutions in two weeks.

While there are concerns that approval of the Ethereum ETF spot could lead to another wave of downside, as seen in the Bitcoin ETF spot in January, another analyst is stepping in to reassure holders.

It takes on X, the analyst he revealed that the potential impact of Grayscale selling its Ethereum Holdings (ETHE) if ETFs become operational will be minimal, providing stability and confidence in the market.

This preview covers the current state of ETH and the wider Ethereum ecosystem. The market was not prepared for the United States SEC to accelerate product approval this year.

In the case of Bitcoin, prices have risen sharply since mid-October as markets expected the ETF to go live in January. When it was launched, it became a “selling news” event, lowering prices briefly.

In the meantime, the prices of Ethereum decreased after the significant gains posted on May 20 when the news entered the public of the United States SEC’s scraping efforts.

Eyes On Grayscale and ETHE Discount

At the same time, the analyst pointed out that, unlike GBTC of Greyscale before the approval of existing ETFs, the discount on ETHE is small and within the range of 1-3%. Currently, Grayscale controls more than $10 billion of ETHE.

A small discount means that traders who bought ETHE at a discount had enough time to sell at the nearest market price. Therefore, it means that even if the Ethereum ETF spot goes live, the selling pressure will be less.

However, only time will tell if ETH will go up or down in the next two weeks. From a regulatory perspective, the resulting transparency after the release of the Ethereum ETF may create demand, allowing more institutions to gain exposure. K33 analysts predict the product will attract between $3.1 billion and $4.8 billion in revenue during the first five months of trading.

Featured image from Canva, chart from TradingView