Crypto News Today- Approach ETH pullbacks with careful consideration

Exercise restraint in analyzing ETH pullbacks

Crypto News– Traders are expressing skepticism about the assumption that the price of Ether (ETH) will decline following the launch of spot Ether exchange-traded funds (ETFs), similar to what happened with Bitcoin (BTC) after spot Bitcoin ETFs began trading.

Insights from Crypto Trader Matthew Hyland

Crypto trader Matthew Hyland shared his perspective in a May 24 post on X, stating, I think there is less likelihood of a selloff here after the ETH ETF compared to the BTC ETF.

Hyland pointed out the difference in the price movements of Ether and Bitcoin before the approval of spot ETFs. He noted that Bitcoin did not experience a price decline leading up to the approval of spot Bitcoin ETFs on Jan. 10.

According to Hyland, The BTC ETF had no pullbacks in the months leading into it. The selling pressure began when the Grayscale ETF was listed the following day. Since the launch of spot Bitcoin ETFs, Grayscale Bitcoin Trust (GBTC) has shed $17.6 billion in assets, as per Farside data.

Ether’s Price Movement and Market Sentiment

Ether had declined by 15% over two months by May 20, until reports suggested a potential pivot in the SEC’s stance toward ETF approvals. Following this news, Ether surged 29% within three days.

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

Concerns about Grayscale’s Plans

There are concerns about Grayscale’s plans to convert its Grayscale Ethereum Trust (ETHE) to an ETF, potentially resulting in selling pressure and price impact. However, Hyland predicted upward momentum for Ether’s price, citing its local highs of $4,092 in March this year even without the positive news of spot Ether ETF approval.

ETF analyst Eric Balchunas lowered his approval hopes for spot Ether ETFs to 25%, not long after the year-to-date all-time high of Ether’s price.

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