ETH Price Could Fall as Spot Ether ETF ‘Novelty’ Wears Off Due to Supply Surge

If Ether’s supply continues to increase at its current pace, its price could fall after the initial excitement about spot Ether exchange-traded funds (ETFs) fades, according to an analyst.

“If ETH supply continues to increase at a rate of ~60k per month as it has been since April, by December supply will be back to where it was at the time of the merger,” crypto trader and Into The Cryptoverse founder Benjamin Cowen wrote in a July 19 X post, referring to the much-anticipated merger that will transition Ethereum (ETH) to its current proof-of-stake consensus model in September 2022.

Ethereum, which fell into deflation after the merger, saw its supply drop by around 455,000 ETH by April 2024.