- Ethereum ETF issuers have begun filing amended S-1 drafts following the SEC's July 8 deadline.
- Ethereum long-term holders are depositing to exchanges despite potential rally from ETH ETF launch.
- Ethereum shows signs of recovery after failing to push below key support level.
Ethereum is down 0.3% on Monday as prospective spot ETH ETF issuers returned their amended S-1 registration statements to the Securities & Exchange Commission (SEC). Meanwhile, ETH long-term holders are gradually returning to the market after years on the sidelines.
Daily digest market movers: Ethereum ETF Issuers files updated S-1s
VanEck filed its amended ETH ETF S-1 registration statement with the SEC on Monday following the regulator's July 8 deadline for issuers to return their amended drafts.
Several top analysts expect the SEC to approve the drafts within the next two weeks as issuers have already completed most of the heavy lifting.
The SEC approved issuers' spot ETH ETF 19b-4 applications on May 23 but also need to greenlight their S-1s before they can begin trading.
Despite the positives from a potential ETH ETF launch, on-chain data shows that a few ETH long-term holders (LTHs) are slowly returning to the market. According to Lookonchain, Golem, which raised 820,000 ETH for $10.12 per coin during its ICO — has moved 26K ETH worth $78 million to an address. In turn, the address sends the ETH to exchanges, including Binance, Bitfinex and Coinbase.
Spot On Chain also reported that a whale who had held onto its tokens for about 1.5 years moved 7,240 ETH worth $21.4 million to Kraken exchange at an estimated profit of $12.8 million.
Meanwhile, Immuenfi and the Ethereum Foundation announced the launch of Attackathon, a time-boxed audit competition aimed at improving Ethereum's security. Attackathon would also feature an educational program to boost security researchers' understanding of the Ethereum ecosystem.
The Ethereum Foundation has seeded the event's reward pool with an initial $500,000 while calling on sponsors in its ecosystem to contribute.
ETH technical analysis: Is this the beginning of a recovery?
Ethereum traded around $2,975 on Monday, down about 0.3% on the day. ETH's slight increase earlier in the day saw shorts suffer over $49 million in liquidations, with long liquidations slowing down to around $44 million, according to Coinglass data.
ETH retested the support around $2,800 to $2,852 again on Sunday but failed to sustain an extended move below it for the second consecutive time as prices quickly bounced above the $3,000 psychological level.
ETH/USDT 8-hour chart
As mentioned in a previous analysis, this level has proven to be a crucial support during downtrends experienced in April and May. Hence, ETH will likely continue to face strong buying demand around the $2,852 support level.
The chart also shows ETH posted a double bottom, a pattern that signifies potential seller exhaustion due to failure to break below a key support level — $2,800 to $2,852 in this case.
ETH could repeat the pattern it followed between April 12 and May 21, where it crashed from $3,550 before sustaining a horizontal movement for a while and then spiked following the SEC's U-turn to approve 19b-4 filings of spot ETH ETF issuers. If ETH repeats such a move, it may consolidate for a few days and then see a potential spike when spot ETH ETFs begin trading on exchanges.
ETH Liquidation Heatmap
In the short term, ETH could briefly move to the $3,104 price level, where there is a liquidation wall of $2.94 million.
Crypto ETF FAQs
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Bitcoin spot ETF has been approved outside the US, but the SEC is yet to approve one in the country. After BlackRock filed for a Bitcoin spot ETF on June 15, the interest surrounding crypto ETFs has been renewed. Grayscale – whose application for a Bitcoin spot ETF was initially rejected by the SEC – got a victory in court, forcing the US regulator to review its proposal again. The SEC’s loss in this lawsuit has fueled hopes that a Bitcoin spot ETF might be approved by the end of the year.
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
SEC vs. Ripple lawsuit outcome expected on July 31, says pro-crypto attorney
The Securities and Exchange Commission vs. Ripple lawsuit could end as early as July 13 or by July 31, according to pro-crypto attorney Fred Rispoli. The lawsuit has been one of the key market movers for the altcoin’s price since 2020.
Crypto Today: Bitcoin recovers even as German government BTC transfers continue, Ethereum and XRP looking up
Bitcoin trades above $57,000 on Monday even as investors remain fearful amid mounting pressure of German BTC transfers. Ethereum trades above the psychologically important $3,000 level as ETH traders anticipate Spot ETF approval by the SEC.
Bitcoin price struggles around $57,000 as German government transfers weigh
Bitcoin struggles against resistance near the $58,500 level but still trades up 2.93% at $57,515 on Monday. On-chain data shows that liquidations on Defi platforms exceed $17.94 million, and Exchange netflow records the highest outflow of 68,498 BTC since November 23, 2023.
Chainlink update: Key on-chain indicators predict nearly 10% recovery in LINK
Chainlink is down 12.39% this week, trading at $12.48 on Binance. The altcoin lost key support at $13.84 and a correction followed, pushing LINK to its July 5 low of $11.05. While whales dumped their Chainlink tokens, smaller investors scooped up the altcoin, buying the dip.
Bitcoin: BTC sinks under $55,000 as Mt Gox prepares payment to creditors
Bitcoin (BTC) price is having its worst week of the year, influenced by selling activity among BTC miners and heavy transfers of Bitcoins to exchanges by Mt Gox and the German Government.