As an experienced analyst, I believe that the recent developments surrounding Ethereum ETF approvals could significantly impact the asset’s price action. The bullish momentum observed in the past few days can be attributed to the collective filings of various investment firms seeking approval for their Ethereum-backed ETFs.
As a researcher studying the cryptocurrency market, I’ve observed that Ethereum, the second-largest digital asset, started the second week of July on an optimistic note following a recent market downturn. The price of Ether found a solid base at $2815 – a significant horizontal level from February 2024. This crucial support intersects closely with the 23.6% Fibonacci retracement line, making it a pivotal point for potential rebound or further correction. With the ongoing progress regarding ETF approval, there’s speculation that this development could boost Ethereum’s bullish momentum once again.
Ethereum Price Analysis: Key Levels to Watch as ETF Approvals Loom
As a crypto investor, I can tell you that the beginning of July played a major role in Ethereum’s correction. The price dropped from its peak of $3516 to $2815, resulting in a loss of approximately 20%. This significant decline coincided with the 50-week moving average (EMA) and the 23.6% Fibonacci retracement level. These key indicators attracted the attention of potential buyers, creating a potentially opportune moment for market entry.
Over the past two days, Ether’s price surged by 8.76% to reach $3071. Concurrently, its market capitalization grew to an impressive $370.2 billion. This uptick in price can be linked to the ongoing progress towards the approval of Ethereum-based Exchange Traded Funds (ETFs), despite the overall market remaining relatively stable.
The first S-1 filing from VanEck arrived today, with the fees already paid. Essentially, they’ve returned the ball to the Securities and Exchange Commission (SEC), so there’s not much new to report at this time. We anticipate receiving the remaining filings soon, except for Bitwise, which submitted its filing last week.
— Eric Balchunas (@EricBalchunas) July 8, 2024
VanEck made slight adjustments to its S-1 form for the upcoming Ethereum SPOT ETF, focusing primarily on modifications related to the fund’s custodial arrangements. This filing was submitted early in the week.
As a researcher studying the developments in the world of exchange-traded funds (ETFs), I’ve noticed an intriguing trend: major players like 21Shares, BlackRock, Fidelity, Franklin Templeton, and Grayscale all submitted their filings on the same day. Their simultaneous actions indicate a burgeoning institutional appetite for cryptocurrency-backed ETFs.
As a researcher studying the Ethereum Exchange-Traded Fund (ETF) market, I’ve gathered information indicating that market players expect trading for these ETFs to begin in the second part of July.
Should the Ethereum price receive approval, it may reverse its current trend and increase by approximately 25%, reaching a resistance level of roughly $3800 on the downward slanting trendline.
A bullish breakout from the overhead is crucial for ETH buyers to signal uptrend continuation.
From my perspective as an analyst, the Ethereum price exhibits a double top formation in the daily chart, which is a reversal pattern that casts doubt on any further upward momentum. Should Ethereum break below the $2815 mark, the downward pressure could intensify significantly, potentially pushing the price down by as much as $2000.
Technical Indicator
- EMAs: The crypto buyers could get a better confirmation of a bullish reversal if the price reclaimed immediate resistance of 200D Exponential Moving Average at $3080. The ETH coin current below indicates a net bearish sentiment.
RSI: The Relative Strength Index (RSI) reverted from the oversold region indicating the overextended selling has brought some cool-off in price for selling to regain strength.
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2024-07-09 20:06