Ethereum (ETH) Price Rebounds Fueled By Possible Listing of Some US-based Spot Ether ETFs

Coinspeaker
Ethereum (ETH) Price Rebounds Fueled By Possible Listing of Some US-based Spot Ether ETFs

Ethereum (ETH) price rebounded on the lower border, around $2,864, of a four-month consolidation in the past few weeks to invalidate further correction. The top-tier altcoin, with a fully diluted valuation of about $403 billion and a daily average traded volume of around $20 billion, has attracted significant attention from both retail traders and institutional investors.

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Moreover, the Ethereum network has proved to be a reliable gateway for the tokenization of real-world assets and at the same time supporting more businesses through its Web3 ecosystem.

Spot Ethereum ETF Soon in The United States

As Coinspeaker previously reported, the speculation of the final approval of United States-based spot Ethereum exchange-traded funds (ETFs) has escalated the altcoins FOMO. In the latest update, the United States Securities and Exchange Commission (SEC) issued a preliminary approval to at least three of the eight asset managers seeking to offer spot Ether ETFs.

Notably, the three spot Ether ETF applicants – BlackRock, Franklin Templeton, and VanEck – are set to begin trading their products as early as Tuesday. According to Eric Balchunas, senior ETF analyst at Bloomberg, the US SEC requested the spot Ether ETF issuers to return final S-1 files before tomorrow in preparation for next week’s launch.

As it was recorded with the spot Bitcoin ETFs, the official launch of the spot Ether ETFs in the United States is bound to trigger a sponsor fees war in the coming weeks. Moreover, the competition among the spot Ether ETF issuers is tight for the same market.

Meanwhile, the rest of the spot Ether ETF issuers including Fidelity, ARK 21Shares, Grayscale, Bitwise, and Invesco Galaxy are also preparing to launch their products by next week.

Supply Crisis Looming

The Ethereum network has registered a significant increase in new addresses in the recent past. The notable mainstream adoption of Ethereum-based web3 projects has helped in the overall bullish outlook.

As of this writing, the Ethereum network has a total value locked of about $58 billion and a stablecoins market cap of around $79 billion. According to data analysis by Dune, more than 33 million Ether has already been staked by around 1 million validators.

Since the Shanghai upgrade last year, more than 12.8 million Ether have flowed into the staking program. Meanwhile, more than 4.3 million Eher, worth about $12 billion have already been burned in a bid to make Ethereum deflationary.

Amid the upcoming spot Ether ETFs, the Ether supply crisis is expected to escalate in the subsequent months.

Ether Price Expectations

Based on the positive fundamentals and the technical standpoint, it is reasonable to assume that Ethereum’s price is on the cusp of a major bull run in the near term. According to veteran trader Peter Brandt, Ethereum price is aiming for at least $5,600 after rebounding from the lower border of the four-month consolidation.

Ethereum (ETH) Price Rebounds Fueled By Possible Listing of Some US-based Spot Ether ETFs

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