- 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.
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
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.