ETH Price Prediction as Ethereum ETF Launch Nears

Many market participants anticipate the launch of Ethereum ETFs to be just around the corner. In the middle of all the waiting, investors are now curious about the future price trajectory of the ETH/USD pair.

Since investors have already factored in their approval of ETH ETF products, the precise launch date of Ether ETFs is not expected to significantly affect Ether’s price. However, the inflows that will follow after the ETH ETF trading starts will drive Ethereum’s price movement.

How much will ETH price increase after ETF launch?

The potential Ethereum ETF could result in a 200% surge in ETH’s value, mirroring past BTC price trends. Despite ETH currently being priced at $3,130, market participants anticipate a year-end price of $9,324. Achieving such a price increase would require a significant spike in demand.

Meanwhile, Ethereum has experienced a more significant price correction compared to Bitcoin, with ETH dropping by 24.65% between May 28 and July 9, while Bitcoin experienced a smaller decrease of 19.43%.

This could also mean that Ether could see less evident growth in ETF-related growth than Bitcoin.

Will Ethereum Hit ATH Again?

At present, all signs point to a significantly lower influx for Ether ETFs than for their Bitcoin equivalents. Key investors and market participants anticipate ether exchange-traded funds (ETFs) would receive 10% to 15% of the assets Bitcoin ETFs hold. Since they began trading on January 11, U.S. spot bitcoin ETFs have witnessed net cumulative inflows of more than $15.1 billion as of today.

However, the market for Ether ETFs is anticipated to boost Ether prices dramatically. Ethereum’s liquidity, or the quantity of Ether that can be bought or sold, is around half that of Bitcoin. That means it takes fewer inflows of price impact for Ethereum versus Bitcoin to see a bull run and hit all-time high levels.

On November 10, 2021, Ethereum reached its all-time high price of $4,867.17. Following that, the lowest price was $897.01, which marked the cycle low. The price then rose to $4,094.18, representing the highest point since the previous cycle low. Currently, there is a pessimistic outlook on Ethereum’s price predictions, as indicated by the Fear & Greed Index reading of 29 (Fear).

However, this could change significantly once the arrival of Ethereum ETF hits the market.