Ethereum is currently navigating a challenging period, with its price plummeting to a severe low of $2,875. In the past 24 hours alone, Ethereum has experienced a significant drop of over 10.2%. This month is particularly crucial for Ethereum, as reports suggest that Spot Ethereum ETFs are set to launch in July 2024.

The US Securities and Exchange Commission approved nearly eight Spot Ethereum ETF applications in May. At this critical juncture, can the launch reverse the continuing decline in Ether’s price? Let’s delve deeper into the possibilities.

Ethereum Market Overview: What We See Now

Sellers have taken control of the Ethereum market, pushing the price to as low as $2,875. A couple of days before, the ETH price was around $3,439. This week, the price has seen extreme volatility. The price primarily oscillated between $3,500 and $2,700.

This week alone, Ethereum has experienced a drop of nearly 16.3%. On June 5 of the previous month, the price was around $3,864, marking a decline of over 24.1% in the past 30 days. The yearly peak for Ethereum was $4,065, reached in mid-March.

Parallels with Bitcoin’s Performance

Ethereum’s performance in 2024 mirrors Bitcoin’s journey. Both cryptocurrencies hit their yearly peaks in mid-March, weakened afterward, and have experienced volatility in recent months, culminating in a steep drop in the past few days.

A week before the SEC approved the Spot ETH ETF applications on May 23, Ethereum’s price started climbing aggressively. That week, at least three long green candlesticks appeared on Ethereum’s daily chart. The longest was on May 20, when the price surged from $3,071 to $3,661 in a single day. This buying pressure sustained until early June. However, since June 6, sellers have gradually regained strength in the market.

Learning from Bitcoin’s Spot ETF Launch

The first eleven Bitcoin spot ETFs were approved by the US SEC on Jan 10, 2024. Let’s see how the Bitcoin market reacted to the approval. The launch could not make any immediate reaction in the market. The price oscillated between $47,018 and $42,900 a week before the lunch. On Jan 10, the price was approximately $46,689, slightly lower than that week’s peak.

In the week following the launch, Bitcoin experienced a few minor drops, with prices ranging between $46,700 and $41,700. However, nearly a month after the launch, Bitcoin encountered strong buying pressure, propelling the price from a low of $42,576 to a high of $73,136 within a month.

The data suggests a promising outlook for Ethereum if the Spot ETFs are launched as planned. While immediate effects may not be visible, similar to Bitcoin’s experience, there is potential for significant market impact over the following month.

The approval and launch of Spot Ethereum ETFs could eventually create the momentum needed to lift Ethereum out of its current slump.

Read Also: Bitcoin ETF vs. Ethereum ETF: Can Ether ETFs Surpass Expectations Despite Bitcoin’s Dominance?

What are your thoughts? Will Spot ETFs be the key to Ethereum’s recovery, or is there another factor at play? Share your insights.