Ethereum remained in the red and breached below $3,500, even as the highly-anticipated launch of spot Ether ETFs went live on July 2nd, as Bloomberg ETF analyst Eric Balchunas had predicted. Ethereum was trading at $3,496, down 1.5 percent in the past 24 hours, as of 06:06 AM EST.

Ethereum continues to trade below the price tag of $3,500 amid market fluctuations.

The drop below $3,500 comes amidst a 30% spike in trading volumes, which may be interpreted as reflecting heavy selling pressure. According to Coinglass, this price action has resulted in the closure of $11 million worth of long positions. More importantly, Ethereum's open interest crossed $15 billion, indicating the existence of a large number of open options contracts and therefore, speculative interest in ETH.

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Here is the chart showing Ethereum's price falling below $3,500 amid market swings. The red dashed line represents the $3,500 threshold.

Eric Balchunas (@EricBalchunas)tweeted about the SEC’s

SEC is actively engaging with ETH ETF applicants! Final approval activities are underway, with eight applicants receiving feedback last week. Responses due soon, setting the stage for a potential July 2 launch. Trading could start as early as July 3! 📈 #Ethereum #ETFs.

Anticipations for the Ether ETF Launch

Changes in the price of ETH are expected to continue right until the Ether ETF launch, with differing predictions about its performance relative to Bitcoin, which witnessed a surge in price subsequent to its ETF launch. JPMorgan analysts come up with a prediction that ETH ETFs could gather inflows in the range of $1 billion-$3 billion a month, much lower than the average inflows for Bitcoin, which stand at $15 billion.

SEC's Active Engagement on Ether ETF Applications

In a tweet, Eric Balchunas said the SEC is in active conversations with ETH ETF applicants regarding final approval activities. Just last week, the SEC replied to eight Ether ETF applicants about their S-1 registration statements, giving an end-week response time. The potential launch date could be July 2, with trading on the 3rd, assuming the estimates hold.

Potential Market Impact of Ether ETFs

Balchunas' call comes after comments from SEC Chair Gary Gensler that the S-1s would get approvals "over the course of this summer." Speaking in front of a US Senate hearing about the SEC's budget, Gensler responded to questioning over the stalling of ETF approvals by claiming religions were now moving through the registration process.


This may be the big event for Ethereum with the upcoming launch of Ether ETFs, further pushing its price higher after the recent market swings. It could therefore result in substantial inflows into ETH following its regulatory approval and subsequent trading. With the launch date drawing near, participants are going to scrutinize the movements of ETH to prove any increased stability and noted growth.