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
VanEck filed its amended ETH ETF S-1 registration statement 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.
Cryptocurrency prices FAQs
Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs. This has been observed in Bitcoin and Litecoin.
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