- Ethereum is termed the "digital oil" of the digital future by the world's largest bank, ICBC.
- SEC is yet to provide feedback on ETH ETF S-1s despite expectations of the agency's comments earlier on Friday.
- Ethereum's recent sell-off may be temporary, considering bullish events on the horizon.
Ethereum (ETH) is down over 6% on Tuesday as the general crypto market is trending downward. Despite the bearish sentiment, the Industrial & Commercial Bank of China has commended Ethereum's growth, describing it as "digital oil."
Daily digest market movers: SEC stays mute, ICBC commends ETH
In a recent report, the world's largest bank, the Industrial & Commercial Bank of China (ICBC), hailed the growth of Ethereum and Bitcoin. While comparing Bitcoin to Gold due to its scarcity, the bank also termed Ethereum "digital oil," noting its role in "providing a strong platform" for supporting a host of Web3 innovations.
"Ethereum has been continuously upgrading its technology in terms of security, scalability and sustainability, providing technical power for the digital future," the report states.
Meanwhile, the Securities & Exchange Commission (SEC) has yet to respond to prospective spot ETH ETF issuers on Tuesday, more than one week after they filed their S-1 registration statements on May 31. Issuers had expected the agency to comment on their filings on June 7. However, they have yet to get any feedback and now expect the SEC to provide comments this week, a source told The Block. According to Nate Geraci, issuers will file another round of amendments after they receive the SEC's comment.
The SEC approved spot ETH ETF 19b-4 filings of issuers on May 23. Before spot ETH ETFs can begin trading though, the agency must approve the issuers' S-1 registration statements. SEC Chair Gary Gensler told Reuters last week that the timing of the S-1 approval depends on how fast issuers respond to the agency's comments.
Read more: Ethereum's price suffers slight decline amid Hong Kong's plan to allow staking in ETH ETFs
While the wait continues, issuers have stated that they plan to market the ETFs as a “producing tech stock” or the “ultimate app store.”
ETH technical analysis: Ethereum's recent setback may be temporary
Ethereum is trading around $3,490, down over 6% on Tuesday. The market appears to be in risk-off mode ahead of the Consumer Price Index (CPI) report and Federal Open Market Committee decision on June 12, according to QCP Capital.
The market decline has accelerated ETH liquidations, with long liquidations accounting for $48.39 million of a total of $52.58 liquidations in the past 24 hours.
Also read: Is Ethereum price forming a local top?
ETH open interest (OI) has declined by about $680 million between Friday and Tuesday. Specifically, ETH options OI also reduced by $1.21 billion in the same time range. Coupled with declining options volume, this confirms the bearish sentiment in the market.
ETH/USDT 4-hour chart
ETH has breached the $3,618 support and is looking to extend the downward move below the $3,457 price level. With spot ETH ETFs on the horizon, the current sell-off may prove to be a temporary setback and a good accumulation zone. A further plunge below the $3,300 support will strengthen the bearish trend.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.