According to insights from industry leaders, Hong Kong is poised to make significant advancements in the cryptocurrency sector by potentially introducing staking options for spot Ethereum exchange-traded funds (ETFs) within the year. Ethereum Staking Innovations In Hong Kong: A New Era For Crypto ETFs? Animoca Brands’ Chairman Yat Siu recently hinted that Hong Kong could […]
According to a Bloomberg report, analysts suggest that the debut of the recently approved Ethereum ETFs in the US may generate significantly less demand than spot-Bitcoin products. Major financial institutions, including BlackRock and Fidelity, await final approvals from the Securities and Exchange Commission (SEC) to list the long-awaited Ethereum funds. However, JPMorgan strategists anticipate much […]
Ethereum price started a downside correction from the $3,885 resistance zone. ETH is now back below $3,800 and might continue to slide toward $3,720. Ethereum started a pullback after it failed to clear the $3,880 resistance. The price is trading below $3,840 and the 100-hourly Simple Moving Average. There was a break below a key bullish trend line with support near $3,830 on the hourly chart of ETH/USD (data feed via Kraken). The pair could start a fresh upward move unless there is a close below the $3,720 support. Ethereum Price Dips Again Ethereum price extended its increase above the $3,840 resistance zone. However, ETH struggled to clear the $3,885 level and started a downside correction like Bitcoin. There was a decline below the $3,840 support level. Besides, there was a break below a key bullish trend line with support near $3,830 on the hourly chart of ETH/USD. The pair declined below the 50% Fib retracement level of the upward wave from the $3,730 swing low to the $3,885 high. Ethereum is now trading below $3,840 and the 100-hourly Simple Moving Average. However, the bulls are active near the 61.8% Fib retracement level of the upward wave from the $3,730 swing low to the $3,885 high. If there is another increase, ETH might face resistance near the $3,810 level. The first major resistance is near the $3,840 level. An upside break above the $3,840 resistance might send the price higher. The next key resistance sits at $3,920, above which the price might gain traction and rise toward the $4,000 level. If the bulls push Ether above the $4,000 level, the price might rise and test the $4,080 resistance. Any more gains could send Ether toward the $4,200 resistance zone. More Losses In ETH? If Ethereum fails to clear the $3,840 resistance, it could continue to move down. Initial support on the downside is near $3,765. The next major support is near the $3,750 zone. The main support sits at $3,720. A clear move below the $3,720 support might push the price toward $3,650. Any more losses might send the price toward the $3,550 level in the near term. Technical Indicators Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone. Hourly RSI – The RSI for ETH/USD is now below the 50 zone. Major Support Level – $3,765 Major Resistance Level – $3,840
As the meme coin mania persists, popular cryptocurrency expert and enthusiast Javon Marks, in a bullish outlook for Dogecoin (DOGE), has predicted the crypto asset to undergo a 4x surge, projecting it to reach a new all-time high and potentially climbing higher. Impending 4x Spike For Dogecoin To New All-Time High This optimistic forecast, which […]
Despite the relative tepid movement in the crypto market since Bitcoin hit a new all-time high (ATH) in March, Bitcoin, Ethereum, and Solana have continued to top traditional assets, including Gold. This was highlighted in a recent report that showed how crypto assets have provided the best returns for a while now. Bitcoin, Ethereum, And Solana Outperform Traditional Assets Raoul Pal, Co-Founder of Exponential Age Asset Management (EXPAAM), shared the crypto investment firm’s latest monthly update, showing annualized returns on all major assets. Related Reading: Dogecoin Social Sentiment Turns Bearish And Drops To March Levels, What This Means For Price Bitcoin, Ethereum, and Solana have topped traditional assets with annualized returns of 141%, 152%, and 224%, respectively. For context, NDX, the best major traditional asset, boasts an annualized return of 17%. Thanks to this, these crypto assets have been the best-performing assets in 11 of the last 14 years. These digital assets also look on course to outperform traditional assets again this year, as they boast higher year-to-date (YTD) gains. Data from CoinMarketCap shows that Bitcoin, Ethereum, and Solana currently have YTD gains of over 67%, 66% and 70%, respectively. On the other hand, Gold, the best-performing non-crypto asset this year, has a YTD gain of 13%. The NDX boasts a YTD gain of 10%, while the SPY has recorded a YTD gain of 11%. Interestingly, while the volatility of crypto assets has been criticized at times, this has largely contributed to why they have continued outperforming traditional assets. The Director of Global Macro at Fidelity Investments, Jurrien Timmer, previously highlighted how Bitcoin has continued to record the best risk-reward since 2020. He also alluded to Bitcoin’s high volatility, stating that Bitcoin’s huge drawdowns have also come with large gains. The same can also said about crypto tokens, especially considering that a token like Solana, which dropped to as low as $10 in late 2022, is now trading above $170. More Gains Ahead For BTC, ETH, SOL Bitcoin, Ethereum, and Solana are expected to record more YTD gains as the year progresses, given that the crypto market is currently in a bull run. Recent developments in the crypto market also paint a bullish outlook for these crypto tokens. One is the increased demand for the Spot Bitcoin ETFs. Data from Farside Investors showed that these funds recorded net inflows of $886.6 million on June 4, their best day since March. Related Reading: Crypto Pundit Shares “Inevitable” Prices For Bitcoin And 5 Altcoins Meanwhile, the Spot Ethereum ETFs are expected to begin trading by July. Crypto analysts like Michael van de Poppe predict these funds could spark a significant rally for Ethereum and other altcoins. ‘Solana Summer’ also looks to be on the horizon, with the crypto token showing signs of imminent parabolic upward trend. At the time of writing, Bitcoin has broken above the $70,000 resistance level and is trading at around $71,000, up almost 3% in the last 24 hours, according to data from CoinMarketCap. Featured image created with Dall.E, chart from Tradingview.com
Ethereum price is struggling to clear the $3,840 resistance zone. ETH could gain bullish momentum if it clears the $3,840 and $3,880 resistance levels. Ethereum is holding gains above the $3,720 level. The price is trading above $3,750 and the 100-hourly Simple Moving Average. There is a connecting bullish trend line forming with support near $3,760 on the hourly chart of ETH/USD (data feed via Kraken). The pair could start a fresh increase unless there is a close below the $3,720 support. Ethereum Price Holds Support Ethereum price declined again below the $3,760 support zone. ETH retested the $3,720 support and remained well-bid. A low was formed at $3,728 and the price started another increase, like Bitcoin. There was a move above the $3,800 level, but the bears were again active near $3,840. A high was formed at $3,836 and the price is now consolidating gains in a range. It is trading just below the 23.6% Fib retracement level of the upward move from the $3,728 swing low to the $3,836 high. Ethereum is now trading above $3,760 and the 100-hourly Simple Moving Average. There is also a connecting bullish trend line forming with support near $3,760 on the hourly chart of ETH/USD. If there is another increase, ETH might face resistance near the $3,820 level. The first major resistance is near the $3,840 level. An upside break above the $3,840 resistance might send the price higher. The next key resistance sits at $3,920, above which the price might gain traction and rise toward the $4,000 level. If the bulls push Ether above the $4,000 level, the price might rise and test the $4,080 resistance. Any more gains could send Ether toward the $4,220 resistance zone. Another Decline In ETH? If Ethereum fails to clear the $3,840 resistance, it could start another decline. Initial support on the downside is near $3,780 and the 50% Fib retracement level of the upward move from the $3,728 swing low to the $3,836 high. The next major support is near the $3,760 zone. A clear move below the $3,760 support might push the price toward $3,720. Any more losses might send the price toward the $3,650 level in the near term. Technical Indicators Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone. Hourly RSI – The RSI for ETH/USD is now above the 50 zone. Major Support Level – $3,760 Major Resistance Level – $3,840
Ethereum price is showing a few bearish signs below the $3,840 support. ETH could gain bearish momentum if there is a clear move below $3,700. Ethereum extended its decline and tested the $3,700 zone. The price is trading below $3,840 and the 100-hourly Simple Moving Average. There was a break below a key bullish trend line with support near $3,780 on the hourly chart of ETH/USD (data feed via Kraken). The pair could start a fresh increase unless there is a close below the $3,700 support. Ethereum Price Dips Again Ethereum price struggled to start a fresh increase above the $3,850 resistance zone. ETH failed to clear the 50% Fib retracement level of the downward wave from the $3,958 swing high to the $3,702 low. There was a rejection pattern below the $3,800 level unlike Bitcoin. The price dipped below the $3,780 level. There was a break below a key bullish trend line with support near $3,780 on the hourly chart of ETH/USD. Ethereum is now trading below $3,840 and the 100-hourly Simple Moving Average. If there is another increase, ETH might face resistance near the $3,800 level. The first major resistance is near the $3,840 level. An upside break above the $3,840 resistance might send the price higher. The next key resistance sits at $3,900 or the 76.4% Fib retracement level of the downward wave from the $3,958 swing high to the $3,702 low, above which the price might gain traction and rise toward the $4,000 level. If the bulls push Ether above the $4,000 level, the price might rise and test the $4,080 resistance. Any more gains could send Ether toward the $4,220 resistance zone. More Losses In ETH? If Ethereum fails to clear the $3,840 resistance, it could start another decline. Initial support on the downside is near the $3,730 level. The next major support is near the $3,700 zone. A clear move below the $3,700 support might push the price toward $3,660. Any more losses might send the price toward the $3,550 level in the near term. Technical Indicators Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone. Hourly RSI – The RSI for ETH/USD is now below the 50 zone. Major Support Level – $3,730 Major Resistance Level – $3,840
Bitcoin and Ethereum supplies on centralized exchanges have hit record lows following the introduction of crypto-related spot exchange-traded funds (ETFs) in the United States. According to Glassnode data, Bitcoin balances on exchanges have fallen to 11.6%, the lowest since December 2017. Ethereum balances are even lower at 10.6%, the lowest since October 2015. Spot ETFs […]
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The winds of change are blowing through the Ethereum ecosystem. Since the long-awaited approval of spot Ether ETFs in the US on May 23rd, a quiet exodus of Ether has been underway. A massive amount of the world’s second-largest cryptocurrency, or around $3 billion, has vanished from centralized exchanges, marking the lowest level of Ether reserves in years. This flight of the digital asset has analysts buzzing with the possibility of a supply squeeze, potentially propelling Ether to new heights. Related Reading: Ethereum On Edge: Can Ether Smash Through Resistance Or Stall After Rally? Exodus To Self-Custody: A Bullish Signal? Crypto analyst Ali Martinez reported on X in a recent post that since the US legalized spot Ethereum ETF products, nearly 777,000 ETH, or almost $3 billion, have been removed from cryptocurrency exchanges. Even if the Ether ETF products haven’t formally begun trading on exchanges yet, the continuation of this trend could have a significant impact on how ETH prices behave over time. Since the @SECGov approved spot #Ethereum ETFs, approximately 777,000 $ETH — valued at about $3 billion — have been withdrawn from #crypto exchanges! pic.twitter.com/EzQVC0cw27 — Ali (@ali_charts) June 2, 2024 Traditionally, high reserves on exchanges have indicated a selling-heavy market, with investors readily offloading their holdings. The current situation, however, paints a different picture. Analysts suggest this mass exodus signifies a shift in investor sentiment. Many are moving their Ether to personal wallets, a move known as self-custody, indicating a long-term bullish outlook. The low exchange reserves suggest investors are treating Ether not just as a trading asset, but as a potential store of value, says Michael Nadeau, a DeFi report crypto analyst. This shift in mindset, coupled with the potential for increased demand from ETFs, could create a perfect storm for a price surge. The Ethereum network itself may also be contributing to the supply squeeze. Unlike Bitcoin miners who face constant operational costs, Ethereum validators, responsible for securing the network under the Proof-of-Stake model, don’t have the same financial pressure to sell their holdings. This lack of “structural sell pressure,” as Nadeau terms it, further restricts the readily available supply of Ether. Ethereum ETF Launch: A Double-Edged Sword? The upcoming launch of Ether ETFs in late June adds another layer of intrigue. The success of spot Bitcoin ETFs in January, which saw a significant price increase for Bitcoin, serves as a potential roadmap for Ether. Analysts predict a similar demand surge, pushing the price of Ether towards, or even beyond, its all-time high of $4,871 set in November 2021. However, a potential roadblock exists in the form of Grayscale’s Ethereum Trust (ETHE), a massive investment vehicle currently holding a staggering $11 billion worth of Ether. If Grayscale decides to follow suit with its Bitcoin Trust (GBTC), which experienced over $6 billion in outflows after the launch of spot Bitcoin ETFs, it could dampen the price increase. Related Reading: Worrying Signs For XRP: Price Tumbles As Demand Dries Up Buckle Up For A Bumpy Ride? While the future remains uncertain, the current market conditions present a fascinating scenario for Ether. The combination of a shrinking supply and the potential influx of demand from ETFs paints a picture of a potential bull run. However, the wildcard of Grayscale’s actions and the broader market sentiment inject a dose of caution. Featured image from Current Affairs-Adda247, chart from TradingView
Data shows the investors in the Ethereum derivatives market have been taking on very high leverage recently, something that could lead to volatility for the asset. Ethereum Estimated Leverage Ratio Has Been At Extreme Levels Recently As pointed out by an analyst in a CryptoQuant Quicktake post, the ETH Estimated Leverage Ratio has been on the up recently. The “Estimated Leverage Ratio” (ELR) refers to an indicator that keeps track of the ratio between the Ethereum Open Interest and Exchange Reserve. The former of these, the Open Interest, here is a measure of the total amount of derivatives positions related to ETH that are currently open on all centralized exchanges. The second metric, the Exchange Reserve, naturally tells us about the total number of tokens of the cryptocurrency that are sitting in wallets attached to all exchanges. Related Reading: This Bitcoin Metric Is “One Of Crypto’s Top Leading Indicators”: Santiment When the ELR’s value rises, it means that the Open Interest is increasing at a faster rate than the Exchange Reserve. Such a trend implies that investors are opting for a higher amount of leverage on average. On the other hand, a decline in the indicator suggests the derivatives market users are moving towards a lower amount of risk as they are deleveraging their positions. Now, here is a chart that shows the trend in the Ethereum ELR over the last few years: As displayed in the above graph, the Ethereum ELR has observed some steep growth recently. This sudden sharp uptrend in the asset came about as news around the spot exchange-traded funds (ETFs) gained traction in the buildup to the approval. The cryptocurrency’s price also registered a sharp rally during the same time. Thus, the conditions were perfect for attracting fresh speculation related to the coin, so it’s not surprising that the indicator’s value saw a spike. The rise has also continued beyond the approval of the ETFs, but the price has fallen to a sideways movement. It would appear that the investors are willing to take even higher risk despite this consolidation, trying to bet big on where Ethereum could escape from here. Historically, a high value of the leverage ratio has meant a higher volatility for the asset’s price. This is because mass liquidation events can become more probable to take place when the investors are sitting in overleveraged positions. Related Reading: How High Can Bitcoin Go Before A Top? Analyst Chimes In With ETH trading sideways recently and all these positions building up, it might take only one break in either direction before a lot of these positions come crashing down. A large number of such liquidations happening at once would only fuel further into the price move that caused them, thus amplifying it. It now remains to be seen how the Ethereum price develops in the coming days and if a volatile move is waiting for it given the trend in the ELR. ETH Price May has been a good time for Ethereum investors as the asset is looking to close the month with positive returns of more than 18%. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
Babylon, a crypto startup co-founded by Stanford University engineering Professor David Tse, has secured $70 million in its latest funding round, according to a Bloomberg report. The company reportedly aims to bridge the gap between Bitcoin (BTC) and Ethereum (ETH), the two leading cryptocurrencies. Bitcoin As A Staking Asset Per the report, the funding round was […]
Ethereum price extended its decline and tested the $3,720 support. ETH is now consolidating and facing many hurdles near the $3,800 level. Ethereum extended its decline and tested the $3,720 zone. The price is trading below $3,820 and the 100-hourly Simple Moving Average. There is a new bearish trend line forming with resistance at $3,810 on the hourly chart of ETH/USD (data feed via Kraken). The pair could continue to move down if it breaks the $3,720 support. Ethereum Price Holds Support Ethereum price remained in a short-term bearish zone and declined below the $3,800 support zone, like Bitcoin. ETH even traded below the 50% Fib retracement level of the upward move from the $3,631 swing low to the $3,975 high. However, the bulls were active near the $3,720 support zone. They protected the 76.4% Fib retracement level of the upward move from the $3,631 swing low to the $3,975 high. Ethereum price is now trading below $3,800 and the 100-hourly Simple Moving Average. If there is a fresh increase, ETH might face resistance near the $3,800 level. There is also a new bearish trend line forming with resistance at $3,810 on the hourly chart of ETH/USD. The first major resistance is near the $3,850 level. An upside break above the $3,850 resistance might send the price higher. The next key resistance sits at $3,890, above which the price might gain traction and rise toward the $3,950 level. If the bulls push Ether above the $3,950 level, the price might rise and test the $4,000 resistance. Any more gains could send Ether toward the $4,080 resistance zone. More Losses In ETH? If Ethereum fails to clear the $3,800 resistance, it could continue to move down. Initial support on the downside is near the $3,720 level. The next major support is near the $3,640 zone. A clear move below the $3,640 support might push the price toward $3,550. Any more losses might send the price toward the $3,500 level in the near term. Technical Indicators Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone. Hourly RSI – The RSI for ETH/USD is now below the 50 zone. Major Support Level – $3,720 Major Resistance Level – $3,800
Ethereum co-founder Vitalik Buterin donated 30 ETH, approximately $113,000, to support the legal defense of Tornado Cash developers Alexey Pertsev and Roman Storm. Etherscan data shows that Buterin donated to the “Free Pertsev and Storm” defense fund on the decentralized fundraising platform Juicebox early today, May 30. The fund had raised 591 ETH worth $2.2 […]
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Michael Nadeau, founder of The DeFi Report, has published a deep dive into the implications of the approval of spot Ethereum (ETH) Exchange-Traded Funds (ETFs) on the cryptocurrency’s price trajectory. This analysis follows on the heels of a significant regulatory nod from the US Securities and Exchange Commission (SEC), which approved the 19b-4 applications for eight leading financial entities — Grayscale, Bitwise, BlackRock, VanEck, Ark 21Shares, Invesco, Fidelity, and Franklin. These approvals, granted under a collective omnibus order on May 23, set the stage for the final steps, which involve awaiting S-1 registrations’ sign-offs before these spot ETFs can start trading. Why Ethereum Could Skyrocket To $15,000 The report draws upon projections by ETF experts at Bloomberg, such as James Seyffart and Eric Balchunas, suggesting that the inflows into Ethereum ETFs could range between 10-20% of those experienced by Bitcoin ETFs. “The logic behind these projections rests on a few key observations—currently, there is less institutional interest in ETH, and it is inherently more complex than BTC. Also, the ETH futures ETF volume is considerably less than BTC’s, ranging from 10-20%, and ETH spot trading volumes are roughly half of BTC’s,” Nadeau explains. He added that “ETH is more difficult to understand than BTC. ETH futures ETF volume is less than BTC (10-20%). ETH spot trading volumes are less than BTC (about 50%). ETH is about 1/3 of BTC’s market cap.” Related Reading: Ethereum Spot ETFs: Report Shows Grayscale Could Keep ETH Price Down With $110M Daily Outflows However, according to the researcher, the dynamics of Ethereum offer a unique perspective when compared to Bitcoin. “Ethereum validators do not incur the substantial operating expenses that Bitcoin miners do, which mitigates the structural sell pressure on the asset,” Nadeau states. This difference is critical in understanding the supply-side dynamics of Ethereum compared to Bitcoin. Nadeau also delves into the current status of Ethereum on-chain activities. A substantial portion of Ethereum, approximately 38%, is effectively ‘soft locked’ across various mechanisms like staking contracts and DeFi applications. This scenario, as Nadeau points out, “helps reduce the available circulating supply, contributing to a decrease in ETH balances on exchanges to levels not seen since 2016—currently, this stands at less than 11% of the circulating supply.” The concept of reflexivity in Ethereum’s market behavior also receives significant attention in Nadeau’s report. “ETH is more reflexive than BTC. This reflexivity could be expressed with price action leading onchain activity, which leads to more ETH burned, which can further drive narratives, more price action, more onchain activity, and more ETH burned,” Nadeau elaborates, suggesting a cyclic effect that could significantly amplify Ethereum’s market presence and valuation. Related Reading: Ethereum Deposits At 4-Month High: Whales Preparing For Selloff? Exploring potential market scenarios, Nadeau questions the extent of rebalancing that might occur from spot Bitcoin ETF holders towards Ethereum, the attractiveness of a 50/50 BTC and ETH allocation, and the potential shift of institutional focus towards Ethereum. He hypothesizes, “If momentum hits ETH, will we see the ‘reflexivity flywheel’ kick into gear? How many institutions are on the sideline right now, having missed BTC? Will they go all in on ETH?” In concluding his analysis, Nadeau presents a valuation framework that anticipates the cryptocurrency market reaching a $10 trillion market cap. He states, “Given our fundamental views on ETH, we think it’s more likely that ETH will outperform Bloomberg’s projections of 10-20% of BTC’s net inflows. Under this scenario” and projects that “ETH could command a market cap at cycle peak of $1.8 trillion, which would price ETH at approximately $14,984 (3.9x), assuming no change in supply.” He continues, “For reference, if Bitcoin reaches a $4 trillion market cap, that would price BTC at $202,000 (2.8x)” at cycle peak. At press time, ETH was trading at $3,823, still around 29 % away from its 2021 all-time high. Featured image created with DALL·E, chart from TradingView.com
While the approval of spot Ethereum ETFs in the US failed to trigger a massive rally for ETH, it sparked a significant surge in the derivatives market. The approval of spot ETFs was hailed as a major regulatory breakthrough for the crypto market, providing a new level of legitimacy and accessibility for Ethereum. The impact […]
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Hong Kong’s Securities and Futures Commission (SFC) has recently announced it will conduct in-site office inspections for the crypto platforms seeking licensing. The watchdog highlighted that the 18 “deemed-to-be-licensed” applicants would have to undergo the examination to receive approval of their application. Related Reading: ‘Play By The Rules’: New York Attorney General Issues New Warning […]
On-chain data shows that the Ethereum exchange netflow recently spiked significantly, a sign that could be bearish for the cryptocurrency’s price. Ethereum Exchange Netflow Registered A Large Positive Spike Recently In a new post on X, the market intelligence platform IntoTheBlock has discussed about the latest trend that has been occurring in the exchange netflow metric for Ethereum. The “exchange netflow” here refers to an on-chain indicator that tracks the net amount of any given cryptocurrency entering into or exiting the wallets associated with centralized exchanges. Related Reading: Injective (INJ) Buy Signal That Led To 700% & 555% Rallies Forms Again When this metric’s value is positive, it means that investors are depositing a net number of tokens on these platforms right now. Generally, one of the main reasons holders may transfer to the exchanges is for selling-related purposes, so this trend can have bearish implications for the asset’s price. On the other hand, the negative indicator implies the exchanges are currently bleeding supply as outflows are outpacing the inflows. Such a trend may be a sign that the investors are accumulating, which can naturally be bullish for the coin. Now, here is a chart that shows the trend in the Ethereum exchange netflow since the start of the year 2024: The graph shows that the Ethereum exchange netflow has registered a positive spike recently. At the height of this spike, the exchanges received 140,660 ETH in net deposits. At the current price of the cryptocurrency, this amount is equivalent to almost $547 million. This is a huge amount and the largest net deposit spree these central entities have witnessed since January. “High inflows to exchanges are typically a sign of selling behavior, as people either try to claim profits or succumb to FUD,” notes the analytics firm. Interestingly, though, since these deposits have come, the asset’s price has increased. This could suggest that either the whales making the inflows haven’t pulled the trigger on selling these coins yet, or they never planned to sell to begin with. Of course, it’s also possible that the market demand has been able to absorb the selling if the whales have indeed sold. In the scenario where the whales made the deposits with the intention of selling but haven’t made the trade yet, Ethereum could feel a bearish effect. Related Reading: Altcoin Season Soon? Quant Says This Ethereum Pattern Could Suggest So It now remains to be seen how the cryptocurrency’s price will develop in the coming days and if these large deposits will play any visible role at all. ETH Price Ethereum had seen a pullback earlier, but the asset has managed to make a recovery, as its price is now once again floating above the $3,900 mark. Featured image from Dall-E, IntoTheBlock.com, chart from TradingView.com
The crypto community is on the cusp of potentially welcoming spot Ethereum ETFs, with the financial community closely monitoring the US Securities and Exchange Commission (SEC) for its impending decision. Key industry figures have recently provided insights and predictions regarding the timeline for approval, drawing on a comprehensive understanding of SEC’s past actions and current […]
Ethereum price extended its increase above the $3,900 resistance. ETH is now consolidating near $3,880 and might continue to grind higher in the near term. Ethereum started another increase above the $3,850 resistance. The price is trading above $3,850 and the 100-hourly Simple Moving Average. There is a major bullish trend line forming with support at $3,860 on the hourly chart of ETH/USD (data feed via Kraken). The pair could continue to move up and test the $4,000 resistance zone in the near term. Ethereum Price Eyes $4,000 Ethereum price remained supported above the $3,650 support zone. ETH started another increase, outperformed Bitcoin, and climbed above the $3,750 level. There was a move above the $3,850 resistance. The bulls pushed the price above the $3,940 resistance. It traded close to the $4,000 resistance. A high was formed near $3,973 and the price is now correcting gains. There was a minor decline below the $3,920 level. The price dipped below the 23.6% Fib retracement level of the upward move from the $3,630 swing low to the $3,973 high. Ethereum price is trading above $3,850 and the 100-hourly Simple Moving Average. There is also a major bullish trend line forming with support at $3,860 on the hourly chart of ETH/USD. Immediate resistance is near the $3,940 level. The first major resistance is near the $3,970 level. An upside break above the $3,970 resistance might send the price higher. The next key resistance sits at $4,000, above which the price might gain traction and rise toward the $4,080 level. If there is a clear move above the $4,080 level, the price might rise and test the $4,220 resistance. Any more gains could send Ether toward the $4,350 resistance zone. Another Decline In ETH? If Ethereum fails to clear the $3,940 resistance, it could continue to move down. Initial support on the downside is near the $3,860 level and the trend line. The next major support is near the $3,800 zone or the 50% Fib retracement level of the upward move from the $3,630 swing low to the $3,973 high. A clear move below the $3,800 support might push the price toward $3,720. Any more losses might send the price toward the $3,630 level in the near term. Technical Indicators Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone. Hourly RSI – The RSI for ETH/USD is still above the 50 zone. Major Support Level – $3,800 Major Resistance Level – $3,940
As the US Securities and Exchange Commission (SEC) approved all the spot Ethereum ETF applications, despite increased regulatory uncertainty surrounding the cryptocurrency, investors are becoming more optimistic about the potential for ETH’s price to reach new heights. Bullish Sentiment Surrounds Ethereum ETF Approval DeFiance Capital Founder and CIO Arthur Cheong predicts that ETH could reach an annual high of $4,500 before the newly approved index funds begin trading, surpassing its mid-March high of $4,096. This projection falls just short of ETH’s all-time high of $4,878 during the 2021 bull run. In addition, a survey conducted by WuBlockchain in the Chinese community revealed that 58% of respondents believe that ETH has the potential to rise to $10,000 or even higher in this market cycle. Related Reading: Kickstarting The Bitcoin Bull Run: Expert Says $70,000 Is The Level To Beat The recent regulatory pivot by the SEC towards approving Ether ETFs has intensified bets on further price gains. In the seven days following the announcement, ETH experienced a 26% surge, marking the largest weekly advance since the 2021 crypto bull market. This development brings hope to speculators, considering the success of US spot Bitcoin ETFs, which have amassed $59 billion in assets since their record-breaking debut in January. However, spot Ethereum ETFs will not participate in staking, earning rewards by pledging tokens to maintain the Ethereum blockchain. This omission could potentially dampen interest in these funds in comparison to holding the tokens directly. Although additional SEC approvals are required before issuers such as BlackRock and Fidelity Investments can launch their products, the timeline for these releases remains uncertain. As of now, ETH is trading around $3,900, with expectations of further upside potential. Options Bets Signal Potential Climb To $5,000 According to a Bloomberg report, analysts such as Pepperstone Group Head of Research Chris Weston believe that pullbacks in ETH are buying opportunities as the risk remains skewed to the upside. Interestingly, as seen in the chart below, some traders are placing bullish options bets, with concentrations signaling a potential climb to $5,000 or more. Furthermore, ETH’s volatility, as indicated by the T3 Ether Volatility Index, is expected to be greater than that of Bitcoin, highlighting the potential for larger price swings in the second-largest digital asset. Related Reading: Ripple CTO Addresses Curious Price Link Between XRP And XLM Insights from the futures market, particularly the level of open interest in Chicago Mercantile Exchange (CME) Ethereum futures, provide evidence of institutional demand for regulated exposure to cryptocurrencies. While open interest in CME Ether futures is growing, it remains significantly lower than that of CME Bitcoin futures. This suggests relatively less institutional exposure to Ether and could potentially impact initial inflows into Ether ETFs. Nevertheless, as the approval of Ethereum ETFs opens up new avenues for investment and speculation, the market is closely watching ETH’s price performance, with bullish sentiment and optimistic predictions prevailing among investors. Featured image from Shutterstock, chart from TradingView.com
A quant has explained how a pattern currently forming in the Ethereum Open Interest could imply the altcoin season is coming “sooner than expected.” Altcoin Season May Be Approaching Soon Based On Ethereum Pattern In a CryptoQuant Quicktake post, an analyst has discussed about why an altcoin season may be coming soon for the cryptocurrency sector, based on a trend taking place in a couple of Ethereum and Bitcoin indicators. The first metric of relevance here is the “Open Interest,” which keeps track of the total amount of derivatives positions related to a given asset currently open on all centralized exchanges. Related Reading: Shiba Inu One Of The Most-Traded Tokens By Whales, Data Shows When the value of this metric goes up, it means the speculators are opening up fresh positions for the coin right now. On the other hand, a decline implies the users are either closing up their positions of their own volition or getting forcibly liquidated by their platform. Now, here is a chart that shows how the trend in the Open Interest has compared between Bitcoin and Ethereum over the past year: As displayed in the above graph, the Bitcoin Open Interest has been moving more or less sideways recently, while at the same time, the metric has registered growth for Ethereum. This would suggest that ETH has been seeing more appetite for derivatives market contracts than the original cryptocurrency recently. One of the driving factors behind this could be the news cycle related to the approval of the spot exchange-traded funds (ETFs) for the asset. In the same chart, the quant has also attached the data for another indicator: the Estimated Leverage Ratio (ELR). This metric measures the ratio between the Open Interest and the Exchange Reserve for any asset. The latter is naturally the total amount of the coin that’s currently sitting in the wallets of all centralized exchanges. The ELR basically provides us with information about the amount of leverage that the average user in the derivatives market is opting for right now. From the graph, it’s visible that this ratio has seen a surge for Ethereum recently but has been showing flat action for Bitcoin. Thus, it would appear that not only has ETH been seeing more speculative interest than BTC recently, but also these users opening contracts are going for higher risk as they are taking on more leverage. Related Reading: Analyst Says “Only A Matter Of Time” Before Bitcoin Flies Past ATH The analyst believes that the fact that Ethereum has overtaken Bitcoin in these indicators could be a potential sign that an altcoin season may be approaching soon. “If Ethereum’s price continues to consolidate in the current range, it’s very possible that the altcoin season will start sooner than expected,” notes the quant. It now remains to be seen how things play out in the market in the near future, given this shift of trend. ETH Price After seeing a slowdown earlier, Ethereum has been back on track in the past couple of days as its price has now climbed back above the $3,900 level. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
Growing altcoin market cap and a decline in Bitcoin dominance have spurred renewed hopes for altseason.
ETH has come within $70 of the psychological $4,000 price level during early trading on May 27.
In an interesting turn of events, the United States Securities and Exchange Commission (SEC) approved the pending Ethereum spot ETF applications last week. This landmark development has led to commentary on the value and acceptability of the Ether token, especially amongst a specific demographic. If Bitcoin Is Digital Gold, What Is Ethereum? Eric Balchunas, an […]
Ethereum’s (ETH) price has failed to make any significant rally following the Securities and Exchange Commission’s (SEC) approval of the Spot Ethereum ETFs. This is undoubtedly surprising, given that the approval was expected to spark a massive price surge for the second-largest crypto token. Why ETH’s Price Has Failed To Rally Ethereum’s price may have […]
As the crypto world anticipates the US Securities and Exchange Commission (SEC)’s decision on spot Ethereum ETFs, Samson Mow, CEO of Bitcoin adoption firm Jan3, has voiced skepticism about the potential of Ethereum-based ETFs compared to Bitcoin. He argues that the imminent approval of these funds is not necessarily a bullish signal for Ethereum, predicting […]
Prometheum’s willingness to play along with the SEC’s ambitions for crypto regulation has stirred disapproval in many quarters.
In the lead-up to the November elections, cryptocurrencies have become a prominent topic in the race for the White House. Notably, the Biden administration has changed its approach to digital asset regulation, likely influenced by former President Donald Trump’s support for the nascent industry. Biden Administration Calls For Balanced Crypto Regulation In an executive release, […]
Recent developments in the crypto market indicate a strong bullish sentiment among Ethereum traders, particularly in the options market. Amid the growing anticipation for potential approvals of spot Ethereum exchange-traded funds (ETFs), there has been a noticeable shift in option pricing, with Ethereum call options becoming more expensive than put options across all expiries. This pricing pattern suggests the market is optimistic about Ethereum’s price prospects. Notably, A call option gives the holder the right, but not the obligation, to buy an asset at a specified price within a specific time frame. Related Reading: Is Ethereum Set For A Major Rally? Options Traders Bet Big On $3,600+ Targets For June This option type is typically purchased by traders who believe the asset’s price will increase. Conversely, a put option provides the holder the right to sell the asset at a predetermined price and is often used as protection against a decline in the asset’s price. Market Indicators Point To A Bullish Ethereum Luuk Strijers, CEO of Deribit, highlighted this trend in his communication with The Block. He noted that the “put minus call skew is negative across all expiries and increasing further beyond the end-of-June expiry, a quite bullish signal.” Additionally, the basis, or the annualized premium of the futures price over the spot price, has increased to around 14%, further reinforcing the bullish outlook. The analysis reveals that traders prefer to purchase call options at a premium compared to put options, particularly for those set to expire at the end of June and later. This pattern is a sign of a bullish market, indicating that traders are not as interested in securing protection against potential price drops as they are in anticipating that Ethereum’s value will keep climbing. Meanwhile, after the US Securities and Exchange Commission (SEC) unexpectedly asked for changes in filings, there has been a resurgence in optimism regarding the possible approval of spot Ethereum ETFs. This optimism has translated into significant market activity, with Deribit experiencing nearly unprecedented trading volumes. Strijers remarked, “We recorded an almost unprecedented trading volume of $12.5 billion notional over the last 24 hours.” This surge in trading volume and market interest reflects how traders and investors position themselves to capitalize on the potential approval of spot Ethereum ETFs. According to data from Deribit, over $480,000 calls will expire by the end of this month, with a notional value of more than $1.7 billion. The data further reveals that the strike price reaches as high as $7,000, with a total intrinsic value of $1.452 billion, indicating that many Ethereum options traders are highly bullish on ETH. ETH Price Performance And Forecast Meanwhile, Ethereum is undergoing slight retracement, down by 2.4% in the past 24 hours, with a trading price of $3,690. Despite this pullback, the asset has maintained a strong uptrend, rising nearly 25% over the past seven days. As the market’s anticipation around spot ETH ETFs grows, a prominent crypto analyst has suggested a potential price movement for Ethereum, indicating a brief pullback at around $4,000 before surging to new all-time highs. Related Reading: Ethereum Nears Crucial Breakout: Could $4,000 Be The Next Move? According to the analyst, while there might be some bumps, reaching an all-time high of $5,000 seems “inevitable” for Ethereum. $ETH: I think we pullback briefly around 4k but this certainly breaks all time highs if/when ETF gets approved. This still seems like a free trade for ETH going to ATH, which is at 5k. Could be some bumps along the way but it seems inevitable. I have both SOL and ETH and not… pic.twitter.com/IznlJ0RAyl — Altcoin Sherpa (@AltcoinSherpa) May 22, 2024 Featured image created with DALL·E, Chart from TradingView
Former US President Donald J. Trump has announced that his campaign will accept donations in Bitcoin and various cryptocurrencies, marking a significant milestone as the first major party Presidential nominee to employ this strategy for fundraising. The announcement came via an official campaign press release. The Trump campaign’s new fundraising initiative integrates the use of […]