Ethereum (ETH) experienced a 1.4% decrease on Tuesday due to the Ethereum Foundation selling more ETH. Gemini, a crypto exchange, predicts that Ethereum ETFs could attract $5 billion in net inflows within six months of trading. This prediction is based on the potential conversion of Grayscale’s Ethereum Trust, which could result in total assets under management (AUM) of $13 billion to $15 billion.
Gemini analysts believe that if ETH ETFs receive net inflows of $7.5 billion, it would lead to a significant increase in the ETH/BTC ratio. Bloomberg analyst James Seyffart estimates that ETH ETFs may capture 20-25% of the flows seen in Bitcoin ETFs, making them the second most successful ETF category in history.
The Securities & Exchange Commission (SEC) approved spot ETH ETF filings in May, but issuers still need S-1 registration statements to launch the products in the US. On the other hand, the Ethereum Foundation resumed selling ETH, exchanging 100 ETH for 343,934 DAI, adding to their total sales of 2,266 ETH worth $6.56 million since January.
In terms of technical analysis, ETH is currently trading at around $3,412, with a potential target of $3,378 before rebounding. Ethereum must surpass the $3,629 resistance level to support a bullish sentiment. Failure to do so could result in a move below the $3,203 support level, leading to a bearish trend. Ethereum is a decentralized blockchain known for its smart contracts functionality and is the second-largest cryptocurrency by market capitalization.