2 Reasons Why Your Ethereum Price Hasn't Pumped Yet

Imagine being told that one of your investments is about to get a major boost but then, nothing much happens. That’s exactly what’s going on with Ethereum right now. You might have heard that an Ethereum ETF was approved, which sounds like great news, right? But surprisingly, Ethereum’s price hasn’t shot up as much as we expected. So, why isn't Ethereum's price skyrocketing?

1. Crypto Industry Cheers 'Historic Move' As Ethereum ETFs Get The Greenlight

Ethereum ETFs have just been approved, marking a historic moment for the crypto industry. This means that you can now invest in Ethereum much like you would in stocks, without directly buying the cryptocurrency itself.

Well, even though this ETF approval sounds like a big win for Ethereum, making it more accessible and potentially attracting more investors, the price hasn't made that big leap everyone was hoping for. I’m here to break down why this is happening and how understanding this can really help you make smarter choices with your investments.

2. Digging Into Why Ethereum Isn’t Soaring

Reason 1: Everyone Saw It Coming 

Let’s start with how the news was already expected. Before the official ETF approval was even announced, Ethereum's price jumped almost 20% in just one day on May 20th. It seems like a lot of people bought Ethereum expecting this news, so by the time it was announced, the big price jump had already happened.

What This Means: Just like when a new iPhone is about to drop and Apple's stock goes up because everyone expects it to be a hit, Ethereum’s price went up because people were anticipating this ETF. When the news finally came out, there wasn’t much left to boost the price further because the big rush had already taken place.

Market Data Insight: Leading up to the official announcement, Ethereum’s trading volume spiked, indicating a high level of speculative trading based on expectations. For example, Ethereum's daily trading volume increased by over 35% in the days leading up to the anticipated approval, similar to how Apple's stock behaves ahead of major product announcements, reflecting investor enthusiasm and speculative interest.

Reason 2: These Things Take Time 

Now, the second big reason is all about timing. Even though the ETF is approved, it doesn’t mean it’s available right away. There’s a lot of work that goes into setting up the ETF (for example developing products, more approvals, marketing products and finally rolling them out) so people can actually start investing in it, and that can take a while—weeks or even months.

What This Means: Think of it like this: when a new restaurant announces it’s opening soon, it doesn’t mean you can eat there right away. They need to set everything up first. Similarly, for Ethereum, just because the ETF is approved doesn’t mean it will impact the price immediately. It takes time for everything to get rolling.

Industry Comparison: The rollout of novel financial products like ETFs often does not translate into immediate price jumps. For example, Bitcoin’s price dropped 15% after spot Bitcoin ETFs were approved for trading on Jan. 10. According to CoinMarketCap data, it took 30 days for the price to spike 30% to $51,870 as investors and institutions took time to evaluate the efficacy and impact of these new investment vehicles.

3. Conclusion:

The approval of the Ethereum ETF is definitely a milestone for cryptocurrency getting more mainstream. But the slow movement in price? That’s actually not too surprising when you think about it this way. This gives us a great learning opportunity and could be a good chance for you if you're thinking about investing.

What You Can Do Next:

1. Keep Yourself Updated: You don’t want to miss out on what’s happening next. Sign up for the Crypto Profit 101 newsletter to get all the latest updates and insights right in your inbox.

2. Look for Other Opportunities: Now that Ethereum is getting officially recognized more like a regular commodity, other cryptocurrencies might be next. Start exploring coins like Solana, Polkadot, and Cardano. These could be your next big opportunity.

3. Be Smart About When to Invest: If you’re thinking about investing in Ethereum or any other cryptocurrency, consider waiting for a good moment. Prices can go up and down quickly, so waiting for a small dip or a "retracement" after a big jump might be a smarter way to get in.

Final Thought: With all these changes happening so fast in the world of cryptocurrency, what’s your plan? Remember, being proactive and informed is key in the crypto world. Don’t just watch from the sidelines—get involved and make the most of these exciting times!