Days after hitting a one-month high of $3,943, the price of Ethereum (ETH) has begun a correction.
The initial surge came after the US Securities and Exchange Commission (SEC) approved applications from the Nasdaq and the New York Stock Exchange to list Ethereum exchange-traded funds.
Although ETF issuers still need final approval before their products can launch, the SEC's May 23 decision represents a major and unexpected victory for the companies that filed and the broader cryptocurrency industry.
Until Monday, many were expecting regulators to reject the filings. Nine issuers, including VanEck, ARK Investments/21Shares and BlackRock, hope to launch Ethereum-linked ETFs, following the SEC's January approval of Bitcoin ETFs, which was another historic moment for the sector.
However, after the initial jump following ETF approval, the price of the second-largest cryptocurrency by market cap has since fallen more than 4% from that level and is now trading at $3,760.
However, the new price reflects a very modest rise of 0.9% over the past 24 hours and a larger increase of 20.7% over seven days. Likewise, the current price represents a 28.5% improvement over ETH's trading price two weeks ago and a 19% jump over 30 days, according to Data From Queen Gekko.
Over the past 24 hours, Ethereum's price has been holding steady, ranging between $3,776 and $3,710. This price behavior typically indicates a build-up of momentum that could lead to a breakout, either above or below the current consolidation range.
At this point, ETH's next direction remains uncertain.
However, analysts at trading firm QCP Capital point out that SEC approval of spot Ethereum ETFs could push ETH prices to $5,000 by the end of the year.