Ethereum

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<p class="is-style-lead">Ethereum price has dropped for two consecutive days, erasing most gains in the last three weeks.</p>
<p>The price of Ethereum (<a href="https://crypto.news/price/ethereum/" rel="noopener noreferrer nofollow">ETH</a>) retreated to $3,145 on Thursday, its lowest level since July 13 and 11% below its highest point this week.</p>
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<h2 class="wp-block-heading" id="why-ethereum-price-is-falling">Why Ethereum price is falling</h2>
<p>This pullback happened despite the Securities and Exchange Commission’s recent approval of spot Ethereum ETFs and their strong performance.&nbsp;</p>
<p>On Wednesday, these ETFs traded about $852 million compared to Bitcoin’s $1.1 billion, meaning that there is strong demand among investors. <a href="https://www.ishares.com/us/products/337614/ishares-ethereum-trust-etf" target="_blank" rel="noopener noreferrer nofollow">Data by Blackrock</a> shows that ETHA has over $269 million in assets, while the Bitwise Ethereum ETF (ETHW) has $230 million in assets.</p>
<p>Ethereum has dropped for three reasons. In a note, Michael van de Poppe, a popular crypto analyst, pointed to the ongoing liquidations from the Grayscale Ethereum Trust (ETHE), a fund with an expense ratio of 2.50%.&nbsp;</p>
<p>As it happened with the Grayscale Bitcoin ETF, many investors have sold their holdings and moved them to cheaper funds. For example, an ETHE investor with $100,000 in assets will pay a fee of $2,500, while one in Grayscale’s Mini Ethereum ETF (ETH) will pay just $150.&nbsp;</p>
<p>Therefore, Michael believes that Ethereum price could retreat some more soon and then bounce back when outflows from ETHE ease. He expects that the coin could jump to a record high when these outflows end.</p>
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   <p lang="en" dir="ltr">If the markets copy the price action of the <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#Bitcoin</a> ETF, then it's likely that we'll have a slight sell-off due to the outflows of the Grayscale trust.<br><br>One-two weeks for downward momentum, before the real surge of Ethereum towards a new all-time high. <a href="https://t.co/fmjE7z7We9" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/fmjE7z7We9</a></p>— Michaël van de Poppe (@CryptoMichNL) <a href="https://twitter.com/CryptoMichNL/status/1816111089882423656?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">July 24, 2024</a>
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<h2 class="wp-block-heading" id="buy-the-rumor-sell-the-news">Buy the rumor, sell the news</h2>
<p>Second, Ethereum price is falling as investors <a href="https://crypto.news/eth-etf-launch-sell-the-news/" target="_blank" rel="noopener noreferrer nofollow">sell the news</a> since the token rallied ahead of the approval. In most cases, assets rise ahead of a major event and then retreat when it happens. This happened after the recent <a href="https://crypto.news/cryptoquant-says-miners-maintain-pre-halving-pace-despite-upgrade/" rel="noopener noreferrer nofollow">Bitcoin halving</a>,<strong> </strong>the <a href="https://crypto.news/bitcoin-etf-approvals-spark-mass-btc-adoption-experts-say/" target="_blank" rel="noopener noreferrer nofollow">approval of Bitcoin ETFs</a><strong> </strong>in January, and the judgment of the Ripple vs. SEC case.&nbsp;</p>
<p>You might also like: <a href="https://crypto.news/ethereum-price-etf-approval-launch" rel="noopener noreferrer nofollow"> Ethereum price could see sell-the-news retreat following ETF approval </a></p>
<p>Finally, the decline aligns with the ongoing Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noopener noreferrer nofollow">BTC</a>) price action. BTC, the biggest crypto in the industry, has dropped for four straight days, triggering a deep sell-off among other altcoins like Avalanche (<a href="https://crypto.news/price/avalanche/" rel="noopener noreferrer nofollow">AVAX</a>) and Jasmy.&nbsp;</p>
<p>Despite the ongoing decline, a bullish case can be made for Ethereum. It is the second-biggest cryptocurrency in the world, has a long history of outperforming Bitcoin, and has strong utility, as Jay Jacobs of BlackRock said.</p>
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   <p lang="en" dir="ltr">Here's BlackRock's Ether pitch to normies via <a href="https://twitter.com/JayJacobsCFA?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@JayJacobsCFA</a>: "While many see bitcoin's key appeal in its scarcity many find ethereum's appeal in its utility.. you could think of ethereum as a global platform for applications that run without decentralized intermediaries" <a href="https://twitter.com/search?q=%24ETHA&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$ETHA</a> <a href="https://t.co/ffyglfSTiB" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/ffyglfSTiB</a></p>— Eric Balchunas (@EricBalchunas) <a href="https://twitter.com/EricBalchunas/status/1815525501152178615?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">July 22, 2024</a>
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<p>Ethereum is still the most active blockchain network. It handles the most stablecoin transactions, has the most assets in the decentralized finance industry, and makes the most money. Data by <a href="https://tokenterminal.com/terminal?v=NjdmMzcz" target="_blank" rel="noopener noreferrer nofollow">TokenTerminal</a> shows that it has made over $1.7 billion in fees this year, double what Tron (<a href="https://crypto.news/price/tron/" target="_blank" rel="noopener noreferrer nofollow">TRX</a>) and Bitcoin have made combined.&nbsp;</p>
<p>You might also like: <a href="https://crypto.news/strong-us-gdp-data-puts-bitcoin-jasmy-avalanche-recovery-at-risk/" rel="noopener noreferrer nofollow"> Strong US GDP data puts Bitcoin, Jasmy, Avalanche recovery at risk </a></p>

Expert explains why Ethereum price suffered a harsh reversal

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