- Ethereum price has dropped nearly 20% since the range high of $2,717 on January 12.
- ETH downtrend could bottom out after a 5% extension to a buyer congestion level.
- The bearish thesis will be invalidated if the PoS token breaks and closes above $2,388.
- BlackRock’s Spot Ether ETF application delay was deja vu as ETH holders remain hopeful like their BTC counterparts.
Ethereum (ETH) price has been rolling down a cliff since January 12 when news of Grayscale Bitcoin Trust (GBTC) redemptions broke. The slump has seen Ether fall out from below the confines of a bullish technical formation, but that could end soon as the spot ETH exchange-traded funds (ETFs) theme gathers momentum.
Also Read: Spot Ethereum ETF: SEC delays BlackRock application; ETH price stays dormant
SEC delays Grayscale spot ETH ETF application
After Bitcoin, an ETH ETF is next on investors’ radar, with Ark Invest COO Tom Staudt saying it will come “soon”. This is despite the delayed decision on Wednesday for BlackRock’s spot ETH ETF application, which preceded another delay of Grayscale’s ETH application, this time with an order to institute proceedings.
BREAKING: SEC DELAYS GRAYSCALE SPOT ETHEREUM ETF (CONVERSION) pic.twitter.com/6WZ4HVsIQG
— Mister Crypto (@misterrcrypto) January 25, 2024
Despite the delay, hope remains alive among ETH holders, crypto hobbyists and enthusiasts alike. This is because the spot BTC ETF investment product suffered a similar fate. As FXStreet reported, there were multiple delays for the eleven applicants and subsequent engagements between the filers and the financial regulator before the landmark approval on January 10.
Ethereum price eyes 5% swing south before possible bullish takeover as spot ETH ETF theme develops
Ethereum price is likely to extend the fall 5%, bringing total losses since the January 12 rejection to around 25%. If history is enough to go by, the $2,059 to $2,118 order block is likely to hold as support, providing ETH with an inflection point. A break and close below the midline of this order block at $2,088 would confirm the continuation of the downtrend.
The Relative Strength Index (RSI) is southbound, suggesting falling momentum, whereas the Moving Average Convergence Divergence (MACD) indicator is in negative territory while stuck below its signal line (orange band). This accentuates the bearish thesis.
Furthermore, the Average Directional Index (ADX) indicator, which quantifies trend strength, is inching north, a sign that the predominant trend still abounds.
If the aforementioned order block fails to hold, Ethereum price could slip past it to tag confluence between the 200-day SMA and the horizontal line at $1,935, below which the big-picture bullish outlook would be invalidated.
ETH/USDT 1-day chart
On the flipside, if the bulls enter the fray, Ethereum price could sidestep the anticipated 5% loss to push north and reclaim the support provided by the lower boundary of the channel. Increased buyer momentum above this level could see ETH shatter the 50-day SMA at $2,335, potentially extrapolating the gains above the $2,388 resistance, thereby invalidating the bearish thesis.
Above here, ETH could overcome the midline of the channel at $2,600 before Ethereum price clears the $2,717 resistance level as it reaches for the $3,000 psychological level, nearly 40% above current levels.
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
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin ETFs beat Gold ETFs with 65% gain since launch
Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand
Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF
Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.