ETH Weakness Post-ETF Approval: A Typical
CryptoNewsTerminal Staff24 May, 2024
ETH Weakness Post-ETF Approval: A Typical
Alex Kuptsikevich, senior market analyst at FXPro, believes the sell-off following the US SEC's approval of a spot Ether (ETH) ETF on Tuesday was a predictable "sell the news" reaction. He anticipates that ETH may fall back towards the crucial support area near $3,000, providing an entry point for institutional investors through the spot ETF. A similar market trend occurred when the SEC approved a Bitcoin spot ETF in January. BTC's value temporarily dropped by 19% before substantial inflows into the ETF began. Kuptsikevich suggests that a similar pattern may unfold with ETH. Despite the initial price drop, Kuptsikevich remains optimistic about the long-term prospects of ETH and the broader cryptocurrency market. He emphasizes the importance of adopting a long-term perspective and not getting caught up in short-term price fluctuations.
