Cryptocurrency analyst Miles Deutscher believes that the most recent Ethereum price drop is "not surprising at all." Deutscher added that the recent pullback might actually be an opportunity for investors.
The most recent Ethereum price drop caught many market participants off guard just a day after the launch of the much-awaited exchange-traded funds.
As reported by U.Today, the flagship altcoin plunged by as much as 8% this Thursday.
Apart from significant outflows recorded by Ethereum ETFs, the second-largest cryptocurrency also came under pressure due to the recent stock market crash.
Tomiwabold OlajideHowever, as Deutscher points out, the crypto king also experienced a severe price correction following the launch of Bitcoin ETFs in January. In fact, the price of Bitcoin plunged by as much as 20% since the debut of these products. Bitcoin then went on to rally a whopping 91% in 51 days, hitting its current record peak of $73,737 on March 14.
With that being said, it is worth noting that Bitcoin ETFs still logged roughly $200 million worth of inflows on their second day of trading, which is a sharp contrast to the net outflows recorded by Ethereum ETFs.
Vladislav SopovThe outflows have taken a toll on the ETH/BTC pair, which has come under renewed pressure.
Moreover, Ethereum might also struggle to recover if there is a more severe stock market correction. As reported by U.Today, cryptocurrency critic Peter Schiff recently predicted that U.S. equities were on the verge of a major crash that could lead to the start of a recession.
Still, most analysts believe that Ether ETFs will end up recording solid outflows that could reach up to $6 billion during the first year of trading.
The price of Ethereum is up more than 70% on a year-over-year basis.
Arman Shirinyan
Vladislav Sopov
Dan Burgin
U.Today Editorial Team