Ethereum (ETH) price is down nearly 1% on Tuesday as the United States Securities and Exchange Commission (SEC) confirmed that it has given the final approval for spot ETH ETFs on July 23.
According to SEC’s updates on its website, it has approved the S-1 registratements of spot ETH ETF issuers, making it Ether the second digital asset ETF to go live in the US. The approval is also visible across the websites of the various asset managers that applied for the product.
Unsure if it means anything but the only funds from the Ethereum ETF race that don’t yet have the official effective documents from the SEC are @Grayscale‘s $ETHE and $ETH. That said I’m still expecting them before trading tomorrow. Not sure what the holdup is? pic.twitter.com/mbVmhCvPmQ
— James Seyffart (@JSeyff) July 22, 2024
The SEC approved ETH ETF issuers’ 19b-4 filings on May 23, but they needed to greenlight their S-1s before the products went live.
Following the final approval, issuers have started making moves as the products are set to begin trading on exchanges in Wall Street open on Juky 23.
Given the market debut of the first spot Ethereum ETFs in the US and the upcoming Bitcoin Conference, this week could prove crucial for Ethereum.
Ether technical analysis: What next ETH
Ethereum is trading around $3,450 on Tuesday, down about 1% on the day. In the past 24 hours, ETH has seen $20.07 million in liquidations, with long and short liquidations accounting for 76% and 24%, respectively.
Ethereum is expected to see increased volatility this week following the launch of ETH ETFs later today. This is evident in ETH options’ implied volatility, which jumped from 56% to 70% last week, according to data from Deribit.
With uncertainty brewing in the market despite the confirmation of ETH ETFs’ launch, the bullish sentiment from inflows may not be able to trigger a massive rally this week, as many predict. On the upside, ETH could rise by 41% to the 2021 all-time high close to $5,000.
ETH/USD weekly chart. Source: TardingView
On the major moving averages were facing upward and were trailing the price, suggesting an increase in the bullish momentum corroborated by robust support on the downside.
In addition, the relative strength index was positioned above te midline in the positive region. The price strength at 55 suggested that the bulls were still in control of the price.
On the other hand, failure to produce a weekly close above $$3,500 would suggest that the launch of ETH ETFs was a sell-the-news event and the ensuing selling pressure could push Ether’s price first toward $3,000 and later to $2,800, where the 50-day EMA sits at the moment.
