The SEC has approved all the individual S-1 Ethereum ETF applications. All the ETFs are set to be listed on the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE). However, the most recent ETF applicant, i.e., the Hashdex Nasdaq Ethereum ETF, might get approved later.
Furthermore, the ETFs that were once touted to take Ethereum above $5,000 on their launch have lifted prices by only 2.5%. However, there is more to this story than meets the eye.
Which ETFs on Which Exchange?
CBOE had confirmed that it would list the following spot Ethereum ETFs on its exchange by Tuesday, 23 July 2024.
Other ETFs, namely the Grayscale Ethereum Trust (not an ETF) and ProShares Ethereum ETF, will be listed on NYSE’s Arca platform on the same day as CBOE, i.e., 23 July 2024.
Why Is Ethereum Only up by 2.5%?
The market expected Ethereum to cross $5,000 at the ETF launch. However, even on the launch day, Ethereum was merely up by 2.5%. At press time, the price was $3488. We have investigated and found several reasons for Ethereum’s lack of bullishness.
- Buy the Rumour, Sell the News
This had been a classic practice in which large whales and traders often bought crypto during rumours and benefited from the subsequent rally; when the news came, they benefited from market euphoria and sold at higher levels.
Ethereum rallied from $3,000 to $3500, or 16.5%. Leading up to its launch, several investors who had bought Ethereum during rumours of ETF approval ($2800-$3000) have started selling, keeping the price pinned down.
- Recent Market Crashes
The recent crash, which caused crypto markets to fall from a $2.65 trillion market cap to a $2.11 trillion market cap, has made investors hesitant. This hesitancy then causes the buyers to shy away from investing in Ethereum.
However, as time progresses, these investors are expected to turn into buyers again.
Ethereum ETF Launch To Kickstart Alt Season
The launch of Ethereum ETFs has started speculation of a crypto alt season. An alt season is a period of marketwide bullishness during which altcoins witness high price growth.
The most common aspect of all alt seasons is the decrease in the market dominance of Bitcoin. This is because, as altcoins outperform Bitcoin in price growth, their combined value contributes more to the crypto market cap.
Ethereum Price Analysis
After a bullish trend since 8 July, Ethereum seems to have reached a local high of $3543 on 20 July. However, the intraday selloff has caused a drop to $3485.
Alt- Ethereum/USD 1-D Charts on 20 July 2024
Technical indicators such as RSI have also signalled that the price might be weak for the next few days as the old buyers exit.
On the upside, Ethereum faces a resistance at $3550, which, if broken, could take the price of ETH towards $4,000. On the downside, Ethereum faces a risk of falling if prices break down below $3400. In case of a breakdown, which is less likely, Ethereum could sink to $2900.
