Ethereum (ETH) Price Rises: US Spot Ether ETF Listing Is the Trigger?

Bittime - Ethereum (ETH) price rises. Was the US Spot Ether ETF Listing the trigger for the increase? Read the following article for complete information!

Decreasing Ethereum Supply on Crypto Exchanges

The decline in Ethereum (ETH) supply on crypto exchanges continues as staked Ether increases, thereby exacerbating the supply crisis. Ethereum (ETH) price bounced back from the lower limit of around $2,864 in the last four-month consolidation to abort further correction. This high-end altcoin, with a full valuation of approximately $403 billion and an average daily trading volume of approximately $20 billion, has attracted significant attention from retail traders and institutional investors.

Additionally, the Ethereum network has proven to be a reliable gateway for tokenizing real-world assets while supporting more businesses through its Web3 ecosystem.

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Ethereum Spot ETF Launches Soon in the United States

As Coinspeaker previously reported, speculation regarding the final approval of a United States-based Ethereum spot exchange-traded fund (ETF) has increased altcoin FOMO. In the latest update, the United States Securities and Exchange Commission (SEC) issued preliminary approval to at least three of the eight asset managers seeking to offer Ether spot ETFs.

Three prominent Ether spot ETF suitors – BlackRock, Franklin Templeton, and VanEck – are set to begin trading their products as soon as Tuesday. According to Eric Balchunas, senior ETF analyst at Bloomberg, the US SEC is asking Ether spot ETF issuers to return final S-1 files by tomorrow in preparation for next week's launch.

As noted with Bitcoin spot ETFs, the official launch of Ether spot ETFs in the United States will spark a sponsorship fee war in the coming weeks. Additionally, competition among Ether spot ETF issuers is fierce for the same market.

Meanwhile, other Ether spot ETF issuers including Fidelity, ARK 21Shares, Grayscale, Bitwise, and Invesco Galaxy are also preparing to launch their products next week.

Supply Crisis Approaches

The Ethereum network has recorded a significant increase in new addresses recently. The prominent mainstream adoption of Ethereum-based Web3 projects has aided in the overall bullish outlook.

Currently, the Ethereum network has a total value locked of about $58 billion and a stablecoin market capitalization of about $79 billion. According to data analysis by Dune, more than 33 million Ether has been staked by around 1 million validators.

Since the Shanghai update last year, more than 12.8 million Ether has flowed into the staking program. Meanwhile, over 4.3 million Ether, worth around $12 billion has been burned in an attempt to make Ethereum deflationary.

Amidst the upcoming Ether spot ETF, the Ether supply crisis is expected to worsen in the coming months.

Ether Price Expectations

Based on positive fundamentals and technical viewpoints, it is reasonable to assume that Ethereum price is on the verge of a major rally in the near future. According to veteran trader Peter Brandt, Ethereum price is aiming for at least $5,600 after emerging from the bottom of a four-month consolidation.

With increasing adoption and a looming supply crisis, Ethereum price has great potential to rise even higher. The launch of an Ether spot ETF in the United States could be the main catalyst that drives Ethereum prices to new levels.

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Conclusion

Ethereum (ETH) price is showing signs of a strong revival thanks to a number of fundamental and technical factors. Decreasing supply on exchanges, mainstream adoption, and the upcoming approval of Ether spot ETFs could be key triggers for further price increases. Investors and traders should monitor these developments closely as the potential for major upside could occur in the near future.

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