Key Points
- Ethereum’s price has bounced back, potentially due to the anticipated listing of US-based spot Ether ETFs.
- The Ethereum network continues to gain traction, supporting businesses through its Web3 ecosystem and tokenizing real-world assets.
Ethereum’s (ETH) price has recently seen a resurgence, bouncing back from the lower limit of a four-month consolidation period at around $2,864. This has helped to negate further corrections. The top-tier altcoin, which has a fully diluted value of approximately $403 billion and a daily average traded volume of around $20 billion, has drawn significant interest from both retail traders and institutional investors.
The Ethereum network has also demonstrated its reliability as a platform for tokenizing real-world assets, while simultaneously supporting a growing number of businesses through its Web3 ecosystem.
US-Based Spot Ether ETFs
Rumors of the final approval for US-based spot Ethereum exchange-traded funds (ETFs) have fueled the altcoin’s FOMO. According to recent updates, the United States Securities and Exchange Commission (SEC) has issued preliminary approval to at least three of the eight asset managers seeking to offer spot Ether ETFs.
Significantly, the three spot Ether ETF applicants – BlackRock, Franklin Templeton, and VanEck – are set to begin trading their products as early as Tuesday. Eric Balchunas, a senior ETF analyst at Bloomberg, stated that the US SEC has asked the spot Ether ETF issuers to return final S-1 files before the following day in preparation for the forthcoming week’s launch.
As was observed with the spot Bitcoin ETFs, the official launch of the spot Ether ETFs in the United States is likely to trigger a war over sponsor fees in the upcoming weeks. Furthermore, competition among the spot Ether ETF issuers is intense for the same market.
Meanwhile, the remaining spot Ether ETF issuers, including Fidelity, ARK 21Shares, Grayscale, Bitwise, and Invesco Galaxy, are also preparing to launch their products by next week.
Impending Supply Crisis
The Ethereum network has seen a significant surge in new addresses recently. The notable mainstream adoption of Ethereum-based web3 projects has contributed to the overall bullish outlook.
At the moment, the Ethereum network has a total value locked of approximately $58 billion and a stablecoins market cap of around $79 billion. According to data analysis by Dune, over 33 million Ether has already been staked by around 1 million validators.
Since last year’s Shanghai upgrade, over 12.8 million Ether have been invested in the staking program. Meanwhile, more than 4.3 million Ether, worth about $12 billion, have already been burned in an effort to make Ethereum deflationary.
With the impending spot Ether ETFs, the Ether supply crisis is expected to intensify in the following months.
Price Expectations for Ether
Given the positive fundamentals and the technical standpoint, it is reasonable to suggest that Ethereum’s price is on the verge of a significant bull run in the near future. According to veteran trader Peter Brandt, Ethereum price is targeting at least $5,600 after rebounding from the lower border of the four-month consolidation.