As a seasoned crypto investor with years of experience, I’ve witnessed numerous market events and price movements that have shaped my perspective on the cryptocurrency landscape. Today’s news about the Ethereum ETF launch and the concurrent Bitcoin conference has piqued my interest.
The price of Ethereum on the ETH market showed little movement as the Ethereum-backed Exchange-Traded Funds (ETFs) commenced trading around 9:30 a.m. Eastern Time (NJT) yesterday. By the end of trading hours, the cumulative volume of shares traded in these ETFs had exceeded one billion dollars, fulfilling predictions from industry analysts.
At present, Bitcoin‘s price remains stable at approximately $65,800 as we approach the commencement of the Bitcoin conference in 2024. On the other hand, Ethereum displays weakness against Bitcoin with a current trading value of $3,440, which could result in Ethereum’s ETF launch being characterized as a selling opportunity.
ETH Price Seeks 4% Gains Ahead of Bitcoin Conference
The graph depicting the Ethereum to Bitcoin exchange rate exhibits a descending trend initiated from the peak in late May, as evidenced by progressively lower peaks and troughs. This pattern may suggest the emergence of a falling wedge formation, which is generally considered a bullish sign of continuation. However, considering the existing resistance levels at the 50-day and 200-day moving averages, a potential breach below the lower trendline could strengthen the likelihood of further price declines.
If the downward-sloping trend line for Ethereum’s price in relation to Bitcoin (BTC) reverses and moves upwards, Ethereum could potentially increase in value and reach as high as 0.0545 BTC. A breach above this level might propel Ethereum further up to 0.0574 BTC, which is a significant resistance point.
If the price is pushed down by bears instead, 0.0511 BTC becomes a strong support level that was previously resistance.
The current Ethereum price trend indicates that it is sitting below both its 50-day simple moving average (SMA) at 0.0531 Bitcoin, and its 200-day SMA at 0.0534 Bitcoin. These levels serve as immediate hurdles for the Ethereum price movement.
The Bitcoins’ Relative Strength Index (RSI), used to gauge BTC price forecast, hovers around 45. This suggests a neutral trend with a slight tilt towards bearishness. The yellow line on the chart, which represents the 14-day moving average of the RSI, acts as a barrier. If Ethereum’s bullish momentum wanes, this resistance could cause the price to drop further.
On July 23, a significant surge in trading volume occurred coinciding with the debut of Ethereum ETFs. As a result, the Ethereum price rose by approximately 3.71%. However, this upward trend was curtailed as the asset encountered resistance at its 50-day and 200-day moving averages.
Is Bitcoin Conference Upstaging Ethereum ETF Launch?
Prior to its debut, there was immense excitement and anticipation surrounding the Ethereum ETF, with many investors closely watching its approach. Notably, Grayscale presently manages the largest Ethereum ETF, boasting a substantial net asset value of $8.6 billion.
As a researcher examining the data from SoSo Value, I’ve noticed that Grayscale experienced outflows totaling $484 million since its ETF launch. Despite this, the cumulative net inflow remained positive at $106.78 million, signifying a successful debut in the market.
Based on Bloomberg’s analysis by James Seyffart, the inaugural day for 7 Ethereum exchange-traded funds (ETFs) saw a collective inflow of approximately $107 million and a substantial trading volume exceeding $1.1 billion. Among these ETFs, BlackRock ETHA attracted an influx of about $266.5 million, while Bitwise ETHW recorded an inflow of around $204 million.
— Wu Blockchain (@WuBlockchain) July 24, 2024
The anticipated Bitcoin 2024 conference could be a factor in Ethereum’s lackluster showing, as other significant market occurrences might have overshadowed the expected influence of the ETF debut.
Bottom Line
Although Ethereum ETFs saw impressive trading amounts totaling over $1.1 billion, the Ethereum price has failed to surpass the $3,500 mark, indicating that substantial trading volumes don’t automatically lead to price growth. After a productive initial day of ETF trading, Ethereum anticipates a modest 4.2% rise relative to Bitcoin in the near future.
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2024-07-24 10:34