Caution Advised on ETH ‘Pullbacks’ — Traders

Traders in the cryptocurrency market are not quick to assume that Ether (ETH) will follow Bitcoin (BTC) in experiencing a price drop after the introduction of spot Ether exchange-traded funds (ETFs). This perspective comes despite the precedent set by Bitcoin, whose price declined after spot Bitcoin ETFs began trading. Matthew Hyland, a crypto trader, elaborated on this viewpoint in a post on X, stating that the likelihood of a selloff for Ether post-ETF approval is lower than it was for Bitcoin.

Hyland emphasized that Bitcoin’s scenario was unique. Before the approval of spot Bitcoin ETFs on January 10, Bitcoin had not faced any significant price decline. The selling pressure for Bitcoin started after the Grayscale ETF was listed the following day. This context differs from Ether’s situation, which had already seen a 15% decline over two months by May 20, possibly due to market speculation about the SEC’s stance on ETF approvals. The price of Ether surged by 29% within three days following favorable news regarding the SEC.

At the time of writing, Ether is priced at $3,752, according to CoinMarketCap data. There are concerns that Grayscale’s intention to convert its Grayscale Ethereum Trust (ETHE) into an ETF could lead to selling pressure and impact Ether’s price. Hyland pointed out a key similarity between Bitcoin and Ether, noting that both had Grayscale products which influenced selling pressures. Given this, it’s plausible that the listing of a Grayscale ETF could bring similar selling pressures for Ether as it did for Bitcoin.

Despite potential challenges, Hyland remains optimistic about Ether’s price. He noted that Ether reached local highs of $4,092 in March without the boost from spot Ether ETF approval news. This surge occurred shortly before ETF analyst Eric Balchunas reduced his approval probability for spot Ether ETFs to 25%, indicating that market movements can occur independent of ETF developments.

The sentiment of uncertainty about Ether’s price continues until the spot Ether ETFs are officially trading. Michaël van de Poppe, founder of MN trading consultancy, reiterated this sense of anticipation. In his post on X, van de Poppe mentioned that the real price movement will depend on the trading volume once the spot Ether ETFs are listed. This waiting period is crucial to understanding whether Ether’s price will move upwards strongly.

On May 24, highlighted the widespread commentary on the lack of significant price movement for Ether following the SEC’s approval of spot Ether ETFs the day before. Despite this, independent Ethereum educator Sassal argued that Ether is undervalued, suggesting that the market has not fully responded to the ETF approval news given the short timeframe since the announcement.

While the introduction of spot Ether ETFs might bring some selling pressures similar to Bitcoin, many traders and analysts remain cautiously optimistic. The differing circumstances leading up to the ETF approvals for Ether and Bitcoin suggest that Ether may not face the same immediate downward pressure that Bitcoin experienced. The real impact will only become clear once these ETFs start trading and market reactions unfold. Until then, traders are widely adopting a wait-and-see approach.

38 thoughts on “Caution Advised on ETH ‘Pullbacks’ — Traders

  1. This article is full of empty promises. Why would Ether be immune to the same selling pressures Bitcoin faced?

  2. The crypto market is always full of surprises. Ether might not follow Bitcoin’s path after all. Exciting times ahead!

  3. It’s naïve to think that Ether will be unaffected by the same mechanisms that drove Bitcoin down. Just waiting for the other shoe to drop.

  4. I’m skeptical. Ether may have surged after the SEC news, but let’s not ignore the overall volatile and unpredictable market dynamics.

  5. Its interesting how the context for Ether is so different from Bitcoin. This could be a game changer!

  6. I’m optimistic too! Ether’s unique situation means it might not face the same pressure as Bitcoin.

  7. Hyland’s analysis really resonates. Ether’s different circumstances could lead to a different outcome. 🤓📈

  8. Ether has weathered previous storms well. The cautious optimism from traders is justified!

  9. I don’t buy into Hyland’s argument. If Bitcoin saw a dip, it’s not unreasonable to think Ether will too. These analysts are just guessing.

  10. I’m cautious. Knowing how volatile crypto is, thinking Ether wont see a similar dip is speculative and likely wishful thinking.

  11. Analysts have good reasons for their optimism. I’m excited for Ether’s future! 🔥💹

  12. Even without the ETF boost, Ether has shown strength. Looking forward to future movements! 🌟💪

  13. Very insightful analysis. Ethers resilience without ETF news is promising!

  14. The whole market is built on speculation and hype. Just because Hyland is optimistic doesnt mean Ether wont experience a massive drop.

  15. Interesting insights from Hyland and van de Poppe. Ethers future is looking bright!

  16. Let’s see how trading volumes affect Ethers price. Im excited for the future!

  17. Matthew Hyland always provides insightful takes. Ether’s scenario is unique, and I’m optimistic too! 🤞🌟

  18. Loving the cautious optimism here! Ethers price resilience is impressive.

  19. Ethers different scenario could mean it won’t follow Bitcoin’s path. Exciting times ahead!

  20. Frankly, all this speculation about Ether ETFs sounds like a bunch of noise. The market might tank anyway.

  21. Hyland and van de Poppe offer great insights. Ether’s unique scenario might just lead to a different outcome.

  22. Matthew Hyland really breaks it down well. Ethers scenario is different, and Im excited for what’s next!

  23. The cautious optimism from analysts is contagious. Feeling positive about Ether!

  24. Interesting analysis! Ether might just surprise everyone. Keep an eye on those trading volumes once ETFs are live. 👀📈

  25. It feels like these crypto ‘experts’ never learn. The same reasons Bitcoin dipped could easily apply to Ether.

  26. This is getting tiring. The whole crypto market is like one big gamble. Ether will likely follow Bitcoin’s path despite these optimistic takes.

  27. Markets can be unpredictable, but analysts’ cautious optimism is giving me hope!

  28. I’m really hopeful for Ether. Even without the ETF news, it hit local highs! 🌕🚀

  29. Great points from Hyland and van de Poppe! The future looks bright for Ether, especially once trading volumes kick in.

  30. Matthew Hyland makes some great points! Ether’s scenario really does look different, and that 29% surge shows its resilience.

  31. People are too quick to separate Ether from Bitcoin’s fate. The market historically doesn’t distinguish much between the two.

  32. The idea that Ether will somehow be immune to the same pressures that affected Bitcoin is wishful thinking at best.

  33. In my opinion, comparing Ether to Bitcoin doesnt make sense. Both are driven by hype and will likely face the same selling pressures.

  34. What a convoluted mess! I don’t see how Hyland can be so optimistic when the signs are pointing to a repeat of what happened with Bitcoin.

  35. Hylands optimism seems misplaced. Ether has already dropped 15% and the Grayscale ETF talk is only creating more uncertainty.

  36. Such a detailed analysis! Ether has shown strength, and Im hopeful for its future.

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