Don’t jump to conclusions about ETH ‘pullbacks’ – traders

Traders are skeptical of the launch of Ether Exchange-Traded Funds (ETFs) in anticipation of a drop in the price of Ether (ETH) similar to what happened to Bitcoin (BTC).

“I think it's less likely to sell off here after the ETH ETF compared to the BTC ETF,” crypto trader Matthew Hyland said in a May 24 post on X.

Hyland pointed out that unlike Ether, Bitcoin did not experience a price drop in the period leading up to the Jan. 10 approval of spot Bitcoin ETFs.

“The BTC ETF didn't have much of a bump in the months leading up to it. The selling pressure started when the Greyscale ETF listed the next day,” Hyland added. Since the launch of the Spot Bitcoin ETF, the Greyscale Bitcoin Trust (GBTC) has lost $17.6 billion in assets, according to Farside data.

Ether fell 15 percent over two months on May 20, until reports suggested the SEC may have reversed its stance on ETF approvals, with Ether surging 29 percent in three days shortly after the news.

At the time of publication, Ether is trading at $3,752 according to CoinMarketCap data.

However, concerns have been raised about Greyscale's plans to convert the Greyscale Ethereum Trust (ETHE) into an ETF, which could lead to selling pressure and price impact.

“One key similarity is that they both have a grayscale product. The Greyscale ETF will bring selling pressure to BTC, which could see the same for the ETH ETF once the product is listed,” Hyland said.

Hyland predicted that the price of Ether would go higher, however, reaching a “local high” in March of this year, when the approval of the Ether ETF reached $4,092 without any positive news. It came in at an all-time year-to-date high before ETF analyst Eric Balchunas cut his gain expectations to 25 percent.

RELATED: Ethereum rally stalls at $3.8K – SEC ETH ETF decision already worth it?

Meanwhile, Michael van de Pop Etter, founder of MN Trading Advisors, echoed a similar sense of uncertainty until ETFs begin trading.

“It's a wait until the list is done, and the upward trend shows a strong lack of continuity,” Van Paas wrote in a May 24 X post.

On May 24th, Cointelegraph reported on the lack of movement in the price of ether following the SEC approval of the spot ether ETF in a widely circulated commentary.

“ETH is stupidly undervalued,” Sassal, an independent Ethereum educator, said, adding that the market is only three days away from “proofing the ETF price.”

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