The price of Ethereum is now down a steep 7% since the launch of the VanEck ETF at the start of this week.
The price correction has dragged Ethereum from a high above $1,750 to reach the current trading level of $1,640.
Ethereum Price Analysis: ETH Drops 7% From ETF Launch
The futures-based Ethereum ($ETH) exchange-traded fund (ETF) has delivered underwhelming results in its first trading week.
The VanEck ETF, which started to trade earlier this week, has witnessed lackluster trading volume, starkly contrasting the huge volumes of institutional investment that the complaint trading vehicle was supposed to bring to the crypto market.
The ETF holds Ethereum futures contracts and is traded on the Chicago Board Options Exchange.
The launch of the ETF brought a huge wave of excitement to the industry, causing the number-two-ranked cryptocurrency to surge as high as $1,750, meeting resistance at the May 2023 lows;
Unfortunately, $ETH has reversed its position since hitting this resistance and has rolled over to fall by over 7%.
The cryptocurrency plunged beneath support at $1,700 and continued to be dragged lower today, causing it to break beneath the June 2021 lows at $1,650 to reach the current $1,640 level.
Should You Hold Tight?
So, the overarching question is whether you should hold your short-term $ETH or let it go.
Well, it seems the bears have already established their grip on the market, indicating that further price drops might be ahead.
If the sellers continue to drag the price beneath $1,600, the first level of support can be expected at $1,588.
This is followed by added support at $1,535 (long-term .786 Fib), $1,510 (March 2021 lows), and $1,488.
*Disclaimer:
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.