Ethereum price hovers around equilibrium as ETH future-based ETF filings await October verdict
- Ether volatility remains shallow, with the first potential catalysts as far as October.
- Ethereum price oscillates along the equilibrium level of $1,849, bound to BTC and the broader market lull.
- The lack of impulse comes as the ETF euphoria gradually fades after the SEC indication of delay.
- Notably, 14 futures-based ETH ETF filings are active in the US.
Ethereum (ETH) price remains range-bound, just like Bitcoin (BTC) price, as the broader market continues in its lull. The weekend, defined by low volume and increased volatility, is inactive for the largest altcoin, suggesting that large holders or whales, like retail traders, may have taken a back seat.
Ethereum price intertwines around equilibrium
Ethereum (ETH) price, like Bitcoin's (BTC) price, is suffering from waning ETF momentum, with the spillover effect affecting the entire market. Save for Shiba Inu (SHIB), which is rallying around The Fear Of Missing Out (FOMO), the rest of the market is in a state of indecisiveness, with the two giants in crypto currently oscillating around fixed positions.
With 14 active futures-based ETH Exchange Traded Fund (ETF) filings live in the US, the fact that the first verdict is expected as early (or far) as October leaves the Ethereum market devoid of impulse, made worse by the lack of catalysts in the BTC market as well.
We're in new territory. It's been 13 days since Volatility Shares was first in a wave of #Ethereum futures ETF filings. Back in 2021 it was just a couple days before SEC forced withdrawals and was just ~7 days in May of this year. The odds of launching increase as time goes by pic.twitter.com/RJPLRr0RW3
— James Seyffart (@JSeyff) August 10, 2023
In the latest ETF-related news, as reported, the US Securities and Exchange Commission (SEC) has delayed a decision on Cathie Wood's Ark Invest Bitcoin Spot ETF application, postponing excitement for when traders can finally trade crypto directly on traditional financial exchanges in the US. The delay is anticipated, considering the SEC called out for public commentary about amendments featured in the ETF applications two days before a decision was due.
As the euphoria on ETFs and the possible catalytic effect it would have on cryptocurrency prices continues to fade, Ethereum price has fallen back to neutral mode. It is currently intertwining along the equilibrium level of $1,849 and could continue with the same throughout the weekend.
This is expected considering the historical nature of weekends where the volume of trades reduces. Although this leaves markets susceptible to increased volatility, it requires impulse.
Ethereum price forecast as ETH bounces between two SMAs
Ethereum (ETH) price is bouncing between the 50- and 100-day Simple Moving Averages (SMAs), respectively, at $1,841 and $1,850 levels. The tight range adds credence to the lack of impulse in the market, leaving ETH in the hands of whales if they choose to act.
 [10.57.02, 12 Aug, 2023]-638274264164018765.png)
ETH Santiment data
According to Santiment data, the whale transaction count for large holders with more than $100,000 and a $1 million balance has steadily declined for the past four months since May. The same applies to the number of daily active addresses indicated in the chart above.
Unless ETH breaks from the current consolidation between the 50- and 100-day SMA, the altcoin could continue in the range-bound horizontal slide into the new week on the four-hour timeframe.
ETH/USDT 4-hour chart
For the next move, however, traders should watch for a decisive move either above or below the $1,886 and $1,813 levels representatively.
Ethereum development FAQs
What is the next big Ethereum software update?
After the Merge, the Ethereum community is looking at the Sharding upgrade next, which has been slated for sometime later in the year. The development can be summarized in four words, “scalability through more efficient data storage.” The software update will increase the capacity of the blockchain, widening the amount of data that can be stored or accessed. At the same time, all services running atop the Ethereum blockchain will enjoy significantly reduced transaction fees.
What is the difference between hard fork and soft fork?
A fork is the splitting of a blockchain after developers agree and proceed to implement upgrades. The decision comes after these developers reach a consensus for a software upgrade. The ensuing part will see one part continue with the status as is, while the other one will proceed with new features combined with the former ones. A hard fork basically entails permanent divergence of a new side chain from the original one, while a soft fork is doing the same, only difference being that it is temporary.
What is EIP-4844?
EIP-4844 is an improvement proposal for the Ethereum network. The upgrade promises reduced gas fees, which is a valuable offering considering the high transaction cost that continues to daunt crypto players. It has been a long-standing concern for the Ethereum network. The proposal is also referred to as “proto-Danksharding,” with an unmatched ability to increase the speed of transactions on the Ethereum blockchain. At the same time, it helps to reduce the transaction cost as everything becomes decentralized.
What is gas in the context of Ethereum?
Gas token is a new, innovative Ethereum contract where users can tokenize gas on the Ethereum network. This means they can store gas when it is cheap and start to deploy the gas once the market has shifted to the north. The use of Gas token helps to subsidize high gas prices on transactions, meaning investors can do everything from arbitraging decentralized exchanges to buying into initial coin offerings (ICOs) early.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
