As an experienced analyst, I’ve closely followed the Ethereum price action over the past few weeks, and I must say that this week has been a rollercoaster ride. After a strong surge above $3800 on Monday, Ethereum traded sideways for the remainder of the week due to the waiting game for ETF issuers’ S-1 registration statements.
After a notable increase on Monday, Ethereum‘s price remained relatively unchanged for the rest of the week. This price stagnation may be attributed to investors acknowledging that Ethereum Exchange-Traded Fund (ETF) issuers must first obtain approval for their S-1 registration statements before trading can commence. The process could potentially take several weeks, if not months. At present, the ETH price is holding steady above $3600, gearing up for its next development.
Ethereum Price Analysis: Key Levels to Watch in the Coming Weeks
The last part of May saw a robust surge in the value of Ethereum, with the coin price increasing from $2860 to $3862 – a significant leap of 35%. This upward trend was first sparked by Bitcoin‘s positive influence on the overall market atmosphere. However, the momentum gained more strength when the US Securities and Exchange Commission gave its approval for spot Ethereum ETFs.
James Seyffart, a Bloomberg ETF analyst, anticipates that the appetite for Ethereum spot Exchange-Traded Funds (ETFs) could amount to between one fifth to one quarter of the market interest seen in Bitcoin spot ETFs. This assessment is grounded in Ethereum’s current market value, which is around 30% of Bitcoin’s.
As a crypto investor, I’ve been closely following the insights shared by Bloomberg ETF analyst James Seyffart. He believes that the demand for Ethereum spot ETFs could account for 20% to 25% of the total demand for Bitcoin spot ETFs. This estimation is derived from the Ethereum market being roughly three times smaller than Bitcoin in terms of size. However, it’s essential to keep in mind that investing in an Ethereum ETF comes with certain limitations. Unlike Bitcoin, Ethereum ETFs currently do not offer the ability to physically settle or deliver the underlying asset, which might limit their appeal for some investors.
— Wu Blockchain (@WuBlockchain) May 25, 2024
Seyffart pointed out some significant drawbacks of Ethereum ETFs. One issue is the inability for investors to stake their tokens within these financial products. Another limitation is the absence of on-chain benefits that could be utilized through Ethereum ETFs.
This week, the Ethereum price exhibited significant fluctuations, hovering around the $3600 mark. Should the underlying support persist, investors may attempt to breach the $4090 resistance level in the ensuing period of approximately one to two weeks.
If a significant price increase occurs, it could fuel further gains towards the anticipated targets of $4500 and then $4900.
Technical Indicator
- Exponential Moving Average: The coin price above daily EMAs(20, 50, 100, and 200) indicates the broader trend remains strongly bullish.
- Average Directional Index: The ADX slope at 33% indicates the ongoing may need an occasional pullback to replenish the exhausted recovery momentum.
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2024-05-26 23:31