Highlights:
- Ethereum is currently in a low-volume trading environment.
- Charts point to a possible breakout as a symmetrical triangle pattern forms.
- The upcoming launch of Ethereum ETF trading could trigger an upside breakout.
Ethereum has shown minimal price movement over the last 24 hours, reflecting the low trading volumes observed across the broader cryptocurrency market. At the time of writing, ETH was trading at $3485.42, marking a modest 0.23% increase. Despite the current stagnation, several developments within the Ethereum ecosystem suggest a potential upside breakout once trading volumes return.
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Ethereum ETFs Trading on the Horizon
One of the most significant indicators of a potential breakout is the impending launch of Ethereum ETFs. Earlier today, Nate Geraci of the ETF Institute tweeted that all Ethereum ETF S-1 amendments had been submitted to the SEC. The tweet mentioned significant players such as Bitwise, Fidelity, 21Shares, Grayscale, Franklin, VanEck, iShares, and Invesco, with known fees for Franklin (0.19%) and VanEck (0.20%). This wave of ETF submissions signals a significant step toward regulatory approval, with most analysts anticipating trading to commence on July 2.
All spot eth ETF S-1 amendments are now IN…
Bitwise, Fidelity, 21Shares, Grayscale, Franklin, VanEck, iShares, & Invesco.
Known fees so far are Franklin (0.19%) & VanEck (0.20%).
Now we wait for SEC. https://t.co/7Uo4kIOQg8
— Nate Geraci (@NateGeraci) June 21, 2024
Adding to this momentum, major financial players have started making substantial monetary preparations for the Ethereum ETFs. According to SEC filings, Fidelity has disclosed a $4.7 million seed investment in ETH ETFs. Grayscale has also reduced its fees to avoid a repeat of the selloff after the Bitcoin ETFs launched. These preparations highlight the growing anticipation and confidence in the success of ETH ETFs, which could drive significant trading volumes and spark a rally in Ethereum’s price.
Fidelity announced its $4.7m seed investment in an $ETH ETF
Ethereum will melt faces…… pic.twitter.com/0dpnxDIKSy
— TheLordofEntry (@thelordofentry) June 22, 2024
Institutional Interest and Banking Sector Involvement
The banking sector is also showing increased interest in Ethereum. According to Bloomberg, Standard Chartered Plc is setting up a trading desk for Bitcoin and Ether, making it one of the first global banks to enter spot cryptocurrency trading.
This new crypto desk will be part of the bank’s FX trading unit and operate out of London. The entry of such a prominent global bank into Ethereum trading opens the market to a broader range of investors, particularly older and more conservative ones. It adds a layer of legitimacy to Ethereum as a mainstream asset.
Technical Indicators and Chart Patterns
From a technical perspective, Ethereum is poised for a breakout. ETH has formed an asymmetrical triangle pattern on the hourly charts, indicating a consolidation phase where trading volumes are drying up. This pattern suggests that an injection of capital from buyers or short sellers could trigger a significant price movement in either direction.
Should buying volumes increase and ETH break out bullish, the first critical resistance level to watch would be $3507.2. Ethereum could rally to $3627.8 if this resistance is broken, a critical weekly resistance level. Breaking this level could propel Ethereum to prices as high as $4,000 early next week.
Conversely, if selling volumes surge and there is a downside breakout, the critical support level to watch would be $3480.4. Breaching this support could see ETH drop to $3388.3 in the short term.
Favorable Conditions for a Bullish Breakout
The odds favor a bullish scenario despite the possibility of a downside breakout. The submission of ETH ETF S-1s and the end of SEC investigations into Ethereum’s status as security suggest that institutional money could soon flow into Ethereum. Bitcoin, which often influences the broader crypto market, has found strong support at $64,000. A rebound in Bitcoin’s price could uplift the entire market, including Ethereum.
The convergence of these factors—upcoming ETH ETFs, increased institutional interest, and positive technical indicators—positions Ethereum on the cusp of a significant breakout.
A Price Rally Coming Soon
While Ethereum’s price has remained relatively stable over the last 24 hours, the underlying developments suggest that this could be the calm before a significant breakout. The anticipated launch of Ethereum ETFs, growing institutional interest, and supportive technical patterns all point toward a potential rally. As the market awaits the SEC’s decision on the ETF submissions and watches for Bitcoin’s next move, Ethereum investors should prepare for an exciting period.
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Disclaimer: Cryptocurrency is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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