Sun, June 16, 2024

Ethereum ETF Delays and Record Open Interest Spike

Ethereum-based status

Quick Look:

  • SEC Chair Gensler’s focus on disclosure adds uncertainty to the spot Ethereum ETFs’ launch.
  • Open interest rose 50% after the SEC’s positive stance on ETH ETFs, showing increased investor activity.
  • Approval of 19b-4 filings from eight issuers on May 23 is a key step towards launching spot ETH ETFs.
  • SEC’s call for updated S-1 filings hints at a soon-to-come launch of spot ETH ETFs.
  • Ethereum’s price remained around $3,860, indicating market caution amid ETF launch uncertainty.

The launch of spot Ethereum (ETH) ETFs may face delays, as SEC Chair Gary Gensler highlighted ongoing efforts to enhance disclosure measures with exchanges. This development casts uncertainty over the timing of these ETFs hitting the market, leaving investors eagerly awaiting further updates.

On Wednesday, Ethereum experienced a significant surge in open interest on exchanges, rising by 50% to reach a new all-time high. This spike followed the SEC’s recent positive shift towards the approval of ETH ETFs. The increased open interest signals heightened investor activity and interest in Ethereum, reflecting growing confidence in its future prospects.

SEC’s Approval of 19b-4 Filings Spurs ETF Launch Optimism

The SEC’s unexpected approval of 19b-4 filings from eight issuers on May 23 has prompted analysts to predict rapid responses to S-1 registration statements. This move is seen as a significant step towards the potential launch of spot ETH ETFs. The market’s reaction to this approval has been closely watched, with analysts anticipating quick developments in the ETF space.

Further reinforcing expectations of an imminent launch, the SEC requested issuers to submit updated S-1 filings last Friday. This request has bolstered analysts’ predictions that spot ETH ETFs might soon be introduced. The regulatory progress suggests that the introduction of these financial products could be closer than initially expected.

Stable Ethereum Price at $3,860 Despite ETF Uncertainty

Following the SEC Chair’s comments about potential delays in the launch of spot ETH ETFs, Ethereum’s price remained steady at around $3,860 on Wednesday. This stability indicates that the market is cautious while awaiting clearer signals from regulators.

Ethereum derivatives products saw a notable increase in open interest, reaching $14 billion—a 50.3% surge. The open interest on the Chicago Mercantile Exchange (CME) climbed by 59.4%, hitting $1.25 billion. These figures highlight the growing demand for Ether in the derivatives market, reflecting strong investor interest.

Growth in ETH Accumulating Addresses After SEC Approval

Since the SEC’s pivot on ETH ETFs, there has been a steady increase in new addresses accumulating ETH. This growth is evident in addresses holding between 10 and 10,000 ETH and those holding between 10,000 and 100,000 ETH. The accumulation trend suggests that more investors are positioning themselves to benefit from future price movements in Ethereum.

Currently, Ethereum is maintaining a sideways trend, with its price hovering around $3,860. This trend is expected to continue until the launch of spot ETH ETFs. Ethereum’s 30-day Market Value to Realised Value (MVRV) ratio stands at around 6%, indicating moderate gains for addresses that purchased ETH in the past 30 days.

Ether Key Support at $3,618; Resistance at $4,093

Ethereum’s key support and resistance levels have been identified, with support at $3,618 and resistance at $4,093. The potential high is projected to be $5,000, possibly surpassing the $4,878 mark and setting a new all-time high. These levels provide crucial benchmarks for traders and investors to monitor.

Recent trading activity resulted in total liquidations of $23.78 million, with long positions accounting for $13.81 million and short positions for $9.97 million, according to data from Coinglass. This liquidation data offers insight into market dynamics and trader behaviour during periods of volatility.

Ethereum Targets $4,096.85, Support at EMA50

Ethereum recently breached the $3,840 level, setting a target of $4,096.85. Positive support is found at the EMA50, while a negative trigger at $3,775 could push prices down to $3,641.82. The current trading range is between $3,750 (support) and $4,000 (resistance), with a bullish trend forecasted.

As the situation evolves, investors and analysts will continue to monitor these key factors to gauge future price movements and market dynamics. The ongoing regulatory developments and market reactions will be crucial in shaping Ethereum’s trajectory in the coming months.

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