Ethereum's price recovery looks imminent as ETF approval sees a glimmer hope
- Ethereum could see a boost as whales resume purchase, spending $35 million in 14 hours to get the largest altcoin.
- JP Morgan says Ethereum ETF could be approved after a litigation process.
- Phishing ads that could potentially drain users' wallets appear on the Ethereum browser Etherscan.
Ethereum (ETH) began showing signs of recovery on Monday, briefly trading at $3,460, after consolidating for the past week. This recovery may likely be due to recent whale activity surrounding the largest altcoin and JP Morgan's positive outlook for an ETH ETF approval.
Read more: Ethereum on course to post weekly losses as debate over security status continues
Daily digest market movers: whales buying activity, JP Morgan ETH ETF odds, phishing scams
Ethereum had a quiet weekend as its price maintained a slow movement, but its price is increasing as a new week kicks off. Here are potential market movers for Monday:
- Ethereum whales are looking to resume a bullish momentum after showing weak hands last week. According to Spot On Chain data, two whales bought 10,322 ETH with $35.11 million in stablecoins within 14 hours. This includes a purchase of 6,145 ETH for 20.86 million USDT by eight wallets, likely one entity, stated Spot On Chain.
The remaining purchase comes from whale 0x5e9, who spent 14.25 million DAI to buy 4,178 ETH. Following the whales' move, ETH rose briefly to $3,460.
ETH's long position liquidations have also significantly reduced in the past few days. Data from Coinglass shows that short liquidations, $11.48 million, exceeded those of long traders, $8.28 million, in the past 24 hours.
- This also comes at a time when Nikolaos Panigirtzoglou, a managing director at JP Morgan, has maintained his January predictions for an Ethereum approval. Despite Bloomberg senior analysts Eric Balchunas and James Seyffart reducing their odds of approval from 70% to 25%, Panigirtzoglou maintained that an ETH ETF has a 50% of entering the market, according to The Block.
He stated that a litigation process may follow if the approval doesn't come in May. "We believe that the most likely scenario is that the SEC eventually loses this litigation (similar to what happened with the Grayscale and Ripple legal battles last year), which means that eventually, the SEC will approve spot Ethereum ETFs (but not as soon as this May)," he told The Block.
- While these signs may signify ETH's potential price recovery, investors should exercise caution as scams are flooding the crypto market. On Monday, an X user noticed a Multi Chain Yield Optimizer phishing ad on Ethereum's mainstream browser Etherscan. Crypto community members highlighted how such phishing ads appeared on Etherscan and CoinGecko in 2022. By requesting the signature of a user's wallet, the ad can maliciously connect to it to steal funds.
unreal, some ads on @etherscan are wallet drainers @Plumferno hope you don't mind me stealing your "no clickly"
url: hxxps://aps.bifi-yleld[.]xyz/
site links to ipjsonapi[.]com pic.twitter.com/YM667m0fEM
— McBiblets (@mcbiblets) April 7, 2024
Technical analysis: ETH to test the $3,493 resistance
Ethereum reached its highest price in around the past seven days when it traded at around $3,480 on Sunday before experiencing a correction. However, it has yet to break past its one-week resistance of $3,493, which formed a liquidity void on April 1.
Also read: Ethereum shows slow movements following criticism of issuance curve article by developer
ETH/USDT 1-hour chart
As a result, ETH may continue the consolidating move briefly to gather momentum for its next move to test the $3,943 barrier. If ETH successfully breaks past it, it could enter a bullish momentum to break past previous highs of $3,517, $3,570, and $3,655.
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.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
