Ethereum’s price has remained relatively stable in recent days, buoyed by the increasing likelihood of spot ETF approvals. As of Friday, the ETH token was trading at $3,455, slightly above this week’s low of $3,233. Despite this stability, it remains in a correction zone after a 13% decline from its peak earlier this month.

Main Catalyst: Anticipated Spot Ethereum ETF Approval

The primary driver for Ethereum is the expected approval of a spot Ethereum ETF by the Securities and Exchange Commission (SEC). This optimism increased following VanEck’s filing of form 8-A, a crucial document in the ETF application process. According to Eric Balchunas, a senior ETF analyst, these funds might start trading on July 2nd.

VanEck just filed 8-A form for spot ETH. They filed their 8-A for spot bitcoin exactly 7 days before launch. Good sign for our July 2nd over/under.

The approval of spot Ethereum ETFs would be significant. As seen with Bitcoin, institutional investors show strong demand for cryptocurrencies. The Grayscale Ethereum Trust (ETHE), which has a management fee of 2.50%, holds over $10 billion in assets. Lower-priced funds are likely to attract substantial interest from both retail and institutional investors.

Ethereum Reserves on Exchanges

Ethereum ETFs will begin trading at a time when exchange balances continue to drop. Despite a broader crypto sell-off, Ethereum’s ecosystem remains robust. The network boasts a total value locked (TVL) of over $108.95 billion and nearly $80 billion in stablecoins. Additionally, it has collected $1.65 billion in fees, surpassing Tron and Bitcoin combined.

Analyst Sentiment on Ethereum Price

Several leading crypto analysts are optimistic about Ethereum’s price. Rekt Finance highlighted rising open interest in Ethereum’s futures market, indicating growing institutional demand ahead of the ETF approval. He also pointed out that Ether is a deflationary asset, steadily reducing its supply. He anticipates that ETH will surge post-ETF approval, move into a consolidation phase, and then continue its bullish trend.

“ETH IS GOING TO ZERO” – that’s what everyone’s saying. But I’ll prove them wrong. I dug into the data and what I found was surprising.

Crypto Rover, with over 700k followers, noted that Ethereum had formed a descending channel resembling a falling wedge pattern, a typically bullish signal. He expects a breakout to occur soon.

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