At most, three of the eight issuers of spot Ethereum exchange-traded funds (ETFs) have now received preliminary approval from the U.S. Securities and Exchange Commission (SEC). Among the approved asset managers are BlackRock, Franklin Templeton, and VanEck.
However, these are just preliminary approvals, with issuers still needing to file their final offering documents this week ahead of listing. Per sources, the exchange-traded funds are being prepared for a launch on July 23.
On the news of the ETF, Ethereum's price had risen by 4.2% in the past 24 hours to $3,472. It represents an enormous comeback from its recent low of $2,811 as the broader cryptocurrency market has regained strength.
Ethereum's price has risen owing to technical indicators that have indicated a change in trend from bearish to bullish. The asset is currently trading above the 21-day, 50-day, and 200-day simple moving averages, which gives a bullish signal for the current uptrend.
Several technicals are in place to endorse the bulls’ control over the asset. The Chaikin Money Flow indicator (CMF) is currently at 0.04, with an upward trend since most of April. Concurrently, the RSI is at 59 and heading north, which confirms the upward trend in the asset.
Besides, a bullish cross of the Moving Average Convergence Divergence (MACD) has confirmed the reversal from bearish to bullish price action.
Analysts across the market are predicting that the price of Ethereum might extend gains to $4,000 but is likely to face resistance around $3,570 and $3,800. On the downside, if the bears return to the scene, Ethereum support could be realized close to the $3,350 level, which also coincides with levels of both the 21-day and 50-day SMAs.
The market remains hopeful with the anticipated launch of the spot ETH ETFs. According to Eric Balchunas, the Bloomberg ETF expert, trading is set to begin on the 23rd of July. The launching is expected to bring in huge institutional flows that could help push the prices of Ethereum higher. Before the conference Bitcoin 2024 that will be held in Nashville, the speculative trading is growing significantly as for the ETH ETFs.
Data from Coinalyze shows that aggregated open interest on Ethereum has increased by 1.5% on exchanges, with perpetual contracts having the highest relative inflows. This increase in open interest shows the increasing market interest in Ethereum prior to the launch of the ETF.
Concurrently, according to data provider Kaiko, Ethereum may outperform Bitcoin post the launch of spot ETH ETFs next week. Now, the price ratio is increasing from 0.045 to 0.05 in favor of Ethereum against Bitcoin. Analysts believe this should propel the asset to new highs.
Attributable to this anticipation is the Ethereum's smart contract utility and the extremely extensive DApps ecosystem around it are beginning to attract traditional investors. Consequently, the inflows from spot ETH ETFs are said to bring more market performance to the asset.