- Ethereum ETFs launch has attracted increased investors’ interest to Layer 1 protocols.
- Ethereum falls to number five among top fee generating protocols.
- Ethereum may continue trading horizontally until Grayscale ETHE outflows cool.
Ethereum is up 3% on Monday following outflows across Ethereum ETFs and increased attention towards Layer 1 blockchain networks.
Daily Digest Market Movers: 21Shares Ethereum ETF boosts transparency, sees increased social volume
These are the top Ethereum-related stories in the past few hours:
- Asset manager 21Shares partnered with Chainlink to enable the integration of its Proof of Reserve into 21Shares Core Ethereum ETF (CETH). The move will ensure that 21Shares is transparent about the assets backing CETH.
- Santiment social data shows that investors have shifted their attention from meme coins and low-cap tokens towards major Layer 1s like Ethereum, Bitcoin and Solana. The market has historically shown strength and occasionally rallied when investors focus more on large-cap tokens.
- In a recent analysis by Token Terminal, Ethereum fell to fifth place among the top ten fee-generating protocols in 2024. ETH's drop may be due to fewer and cheaper transactions on Ethereum's Mainnet since the introduction of blobs following the Dencun upgrade in March.
- Ethereum ETFs recorded net outflows of $285 million last week. The outflows came as a result of increased selling pressure on Grayscale Ethereum Trust (ETHE), which saw it witness an exodus of over $1 billion. Many analysts have speculated that it would be difficult to establish the impact of ETH ETFs until ETHE outflows slow down.
- Spot-on-Chain said a big whale deposited 25.8K ETH worth $87M to Binance in the past few hours. From May 31 to July 25, the whale withdrew 26,721 ETH from Binance at an average price of $3,457. He has deposited 26,660 ETH to the CEX at only ~$3,376. His estimated total loss from ETH is $2.16M (-2.34%).
ETH Technical Analysis: Ethereum to continue sideways move
Ethereum is trading around $3,350 on Monday, up 3% on the day. ETH's 24-hour liquidation is $48.37 million, with long and short liquidations accounting for $26.9 million and $21.47 million, respectively.
Ethereum recently broke above the $3,357 resistance despite most traders being bearish, as visible in ETH's Long/Short Ratio, which is at 0.905. The bearish sentiment may be due to investors expecting more price declines due to outflows from ETHE. As a result, ETH may continue its horizontal trend but tilted towards the downside. The move aligns with a drop in ETH options open interest (OI) which declined to $6.09 billion, indicating uncertainty among investors.
ETH/USDT Daily chart
However, ETH could rise similarly to Bitcoin after outflows from Grayscale cooled. Hence, ETH could attempt to break above the $3,730 key resistance.
In the short term, ETH could rise to $3,413, where positions worth $60.21 million risk liquidation.
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.
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