Issuers file amended Ethereum ETF S-1s as ETH shows recovery signs
|- Ethereum ETF issuers have begun filing amended S-1 drafts following the SEC's July 8 deadline.
- Ethereum long-term holders are depositing to exchanges despite potential rally from ETH ETF launch.
- Ethereum shows signs of recovery after failing to push below key support level.
Ethereum (ETH) is down 0.3% on Monday as prospective spot ETH ETF issuers returned their amended S-1 registration statements to the Securities & Exchange Commission (SEC). Meanwhile, ETH long-term holders are gradually returning to the market after years on the sidelines.
Daily digest market movers: Ethereum ETF Issuers files updated S-1s
Asset managers VanEck, Grayscale, Fidelity, BlackRock, 21Shares, Franklin Templeton and Bitwise have all filed their amended spot ETH ETF S-1 registration statements with the SEC on Monday following the regulator's July 8 deadline for issuers to return their amended drafts.
Several top analysts expect the SEC to approve the drafts within the next two weeks as issuers have already completed most of the heavy lifting.
The SEC approved issuers' spot ETH ETF 19b-4 applications on May 23 but also need to greenlight their S-1s before they can begin trading.
Despite the positives from a potential ETH ETF launch, on-chain data shows that a few ETH long-term holders (LTHs) are slowly returning to the market. According to Lookonchain, Golem, which raised 820,000 ETH for $10.12 per coin during its ICO — has moved 26K ETH worth $78 million to an address. In turn, the address sends the ETH to exchanges, including Binance, Bitfinex and Coinbase.
Spot On Chain also reported that a whale who had held onto its tokens for about 1.5 years moved 7,240 ETH worth $21.4 million to Kraken exchange at an estimated profit of $12.8 million.
Meanwhile, Immuenfi and the Ethereum Foundation announced the launch of Attackathon, a time-boxed audit competition aimed at improving Ethereum's security. Attackathon would also feature an educational program to boost security researchers' understanding of the Ethereum ecosystem.
The Ethereum Foundation has seeded the event's reward pool with an initial $500,000 while calling on sponsors in its ecosystem to contribute.
ETH technical analysis: Is this the beginning of a recovery?
Ethereum traded around $2,975 on Monday, down about 0.3% on the day. ETH's slight increase earlier in the day saw shorts suffer over $49 million in liquidations, with long liquidations slowing down to around $44 million, according to Coinglass data.
ETH retested the support around $2,800 to $2,852 again on Sunday but failed to sustain an extended move below it for the second consecutive time as prices quickly bounced above the $3,000 psychological level.
ETH/USDT 8-hour chart
As mentioned in a previous analysis, this level has proven to be a crucial support during downtrends experienced in April and May. Hence, ETH will likely continue to face strong buying demand around the $2,852 support level.
The chart also shows ETH posted a double bottom, a pattern that signifies potential seller exhaustion due to failure to break below a key support level — $2,800 to $2,852 in this case.
ETH could repeat the pattern it followed between April 12 and May 21, where it crashed from $3,550 before sustaining a horizontal movement for a while and then spiked following the SEC's U-turn to approve 19b-4 filings of spot ETH ETF issuers. If ETH repeats such a move, it may consolidate for a few days and then see a potential spike when spot ETH ETFs begin trading on exchanges.
ETH Liquidation Heatmap
In the short term, ETH could briefly move to the $3,104 price level, where there is a liquidation wall of $2.94 million.
Ethereum FAQs
Ethereum is a decentralized open-source blockchain with smart contracts functionality. Serving as the basal network for the Ether (ETH) cryptocurrency, it is the second largest crypto and largest altcoin by market capitalization. The Ethereum network is tailored for scalability, programmability, security, and decentralization, attributes that make it popular among developers.
Ethereum uses decentralized blockchain technology, where developers can build and deploy applications that are independent of the central authority. To make this easier, the network has a programming language in place, which helps users create self-executing smart contracts. A smart contract is basically a code that can be verified and allows inter-user transactions.
Staking is a process where investors grow their portfolios by locking their assets for a specified duration instead of selling them. It is used by most blockchains, especially the ones that employ Proof-of-Stake (PoS) mechanism, with users earning rewards as an incentive for committing their tokens. For most long-term cryptocurrency holders, staking is a strategy to make passive income from your assets, putting them to work in exchange for reward generation.
Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) mechanism in an event christened “The Merge.” The transformation came as the network wanted to achieve more security, cut down on energy consumption by 99.95%, and execute new scaling solutions with a possible threshold of 100,000 transactions per second. With PoS, there are less entry barriers for miners considering the reduced energy demands.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.