Ethereum ETFs Now Trading: When Will ETH Price Increase?

Ethereum’s spot exchange traded funds (ETFs) are now active in the US, yet the impact on the price of ETH may not be immediately evident. Despite the launch of these ETFs, Ethereum has experienced an 8.2% decline over the week. This decline has prompted investors to question when the price of Ethereum will begin to rise due to the new funds purchasing ETH and potentially creating scarcity. Market analysts and cryptocurrency experts suggest that it may take some time before the effects of the new ETFs are felt.

Market analyst Grzegorz Drozdz from Conotoxia Ltd. highlighted the historical trend with Bitcoin ETFs, where despite initial capital influx, Bitcoin initially saw a decline followed by a substantial rally. He suggests a similar pattern may emerge for Ethereum ETFs.

Reflecting on the impact of Bitcoin’s spot ETFs, analysts predict a potential influence on Ethereum’s price. Bitcoin, for instance, experienced a drop below $39,000 shortly after the ETFs went live, followed by a significant surge to $73,000 over the subsequent months due to record inflows.

Jupiter Zheng, Partner at HashKey Capital, emphasized the potential positive signals for Ethereum post-August, considering factors like the Mt. Gox incident and the ongoing repayment to creditors. The fear of a major selloff due to these repayments lingers, which could affect Bitcoin and the broader crypto market.

The U.S. Presidential election and the anticipation surrounding announcements at the Bitcoin Conference are also factors affecting sentiment around Ethereum. Bartosz Lipinski, CEO of Cube Exchange, mentioned that investors are awaiting potential market-boosting news from the conference.

Macro markets play a crucial role in the cryptocurrency space, with the Federal Reserve expected to cut interest rates twice this year, potentially impacting the market. Chief Economist at BIT Mining, Youwei Yang, highlighted that significant interest in Ethereum might coincide with a decrease in interest rates and increased risk-on funds.

Despite current factors influencing crypto prices, experts remain optimistic about the long-term outlook. Sergei Gorev, risk manager at YouHodler, pointed out that November historically tends to be a strong month for cryptocurrencies, suggesting a potential increase in quotations in the upcoming autumn months.

In conclusion, while various factors are currently affecting crypto prices, experts believe that strong inflows from Ethereum ETFs and changes in macroeconomic conditions could lead to a positive end to the year.