Ethereum prices dropped more than 3% from an intraday high of $3,540 on July 22 to a low of $3,425 during the Tuesday morning Asian trading session.

They have recovered slightly since but analyst ‘Kaleo’ predicted that there is a “high likelihood we see some type of pullback after the spot ETF launches.”

He predicted that the asset would drop below $2,800 in a range low before the inevitable price discovery.

Ethereum ETF Launch

On July 22, the Securities and Exchange Commission officially approved the listing of multiple spot Ethereum ETFs. ETF issuers are making final adjustments before their products are launched for trading in the United States on July 23.

CEO and founder of Intuition, an Ethereum-based data authentication protocol, Billy Luedtke, commented: “The approval of the ETH ETF marks a significant milestone, legitimizing Ethereum and providing a gateway for institutional investors to participate.”

Meanwhile, Coinbase stated that by increasing usage of Ethereum, “spot ETH ETF investors will help advance Ether’s utility and contribute to the development of the overall crypto ecosystem.”

Bloomberg’s senior ETF analyst Eric Balchunas observed that the Ethereum ETF race has already begun with a transfer from the Grayscale ETHE fund to its mini-fund ‘ETH’ on July 23.

The Grayscale Ethereum Mini Trust will start with $1 billion in assets and a category-low 15 basis point fee. “That’s a new variable in this race that we didn’t have in the BTC [ETF] race,” he added.

Existing ETHE shareholders will receive a proportional distribution of shares in its new Mini Trust on July 31.

On July 22, the world’s largest asset manager, BlackRock, issued a statement on Ethereum and its new iShares Ethereum Trust ETF (ETHA), which was a big endorsement of the asset that read:

“Ethereum’s appeal lies in its decentralized nature and its potential to drive digital transformation in finance and other industries.”

Moreover, rival asset managers are already rolling out their ETH ETF advertisements. On July 23, Bitwise posted an ad for its prospectus stating that it will donate 10% of the Bitwise Ethereum ETF (ETHW) profits to Ethereum open-source protocol development.

ETH Price Outlook

Ethereum was trading down 1.5% on the day at $3,484 at the time of writing. The asset has only managed to return to resistance at around $3,500 during last week’s rally and couldn’t get near its 2024 high of just over $4,000 back in March.

However, if price action mirrors that of BTC, there could be a new all-time high for ETH a few months after the ETFs have been trading.