- Grayscale's Ethereum Trust fee could spark outflows, canceling out potential inflows across Ethereum ETFs.
- Ethereum Foundation-related wallet has been dumping ETH on exchanges.
- Ethereum could see a new all-time high if it moves above a key resistance.
Ethereum (ETH) is down 0.4.% on Thursday following speculations surrounding the potential negative impact of Grayscale's Ethereum Trust fees and ETH dump from the Ethereum Foundation.
Daily digest market movers: Grayscale's fee, Ethereum Foundation dump
The Grayscale Ethereum Trust 2.5% fee has left many ETHE holders fuming as the asset manager maintained the high fee structure it applied to Bitcoin ETFs.
Several analysts predicted that the move may see Grayscale's Ethereum Trust suffer increased outflow similar to its Bitcoin counterpart when ETH ETFs go live. As a result, it could cancel out potential inflows in other Ethereum ETFs, reducing the upward impact on ETH's price.
Ethereum ETF issuers filed their final S-1 registration statements on Wednesday, revealing fees for their respective products. The Securities and Exchange Commission (SEC) also approved 19b-4 filings of Grayscale's Mini Trust and ProShares Ethereum ETFs, two of the latest additions to the ten funds potentially launching on Tuesday.
Bloomberg Ethereum ETFs List
Meanwhile, an Ethereum Foundation-related wallet, 0xdbe, is suspected of dumping ETH following the recent price dip after depositing 1,602 ETH worth $5.48 million to Kraken in the past few hours, according to Spot On Chain.
Since June 8, 0xdbe has been dumping ETH on exchanges, potentially selling 19,488 ETH worth about $70.6 million. As revealed in the chart below, a decline followed its three large sales.
PnL overview
ETH technical analysis: Ethereum could rally above the $4,093 yearly high
Ethereum is trading around $3,400, down 0.4% in the past 24 hours. The move has seen ETH liquidations reach $30.90 million, with long and short liquidations accounting for $22.08 million and $8.82 million, respectively.
Since the crypto market recovery, Ethereum's Taker Buy/Sell Ratio has been in an uptrend, according to CryptoQuant's data.
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ETH Taker Buy/Sell Ratio
The Taker Buy/Sell Ratio estimates the dominant sentiment among futures traders. Values above 1 suggest bullish pressure is dominant, while values below 1 indicate bearish pressure.
If the Taker Buy/Sell Ratio uptrend continues, ETH will likely ride the bullish wave further. And with spot Ethereum ETFs set for a potential Tuesday launch, ETH bears could see heavy liquidations.
On the upside, ETH faces resistance around $3,977, a level it has failed to overcome since descending from its yearly high of $4,093 in March. ETH options data also shows several call options with a strike price of $4,000. Hence, prices are likely to tilt towards this level in the long run.
ETH/USDT 8-hour chart
A successful move above this resistance level could see ETH rally to a new all-time high in the coming months. On the downside, ETH may find support around the $3,000 psychological level.
ETH could drop to $3,360 in the short term, where $24.39 million long positions risk liquidation.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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