• Grayscale Ethereum Trust premium noted a sharp decline of almost 30% in just two months.
  • Back in December 2022, Grayscale Bitcoin Trust also registered the highest discount of 48.89%.
  • Ethereum price, despite noting minimal recovery, is still in a macro uptrend, trading around $1,200.

Grayscale has been making headlines for all the wrong reasons over the last few months as the crypto winter reached its digital asset investment options. Following the Grayscale Bitcoin Trust’s (GBTC) all-time high discount, the asset management company’s Ethereum Trust premium also registered historical lows.

Grayscale takes another hit

Grayscale Ethereum Trust (ETHE) fell to its lowest-ever value as the investment product registered a discount of almost 60% to its net asset value (NAV). Although the Ethereum Trust was already trading at a discount of 30%, the sudden drop came around November following the FTX collapse. 

Grayscale Ethereum Trust discount to NAV

Grayscale Ethereum Trust discount to NAV

Consequently, ETHE’s premium fell by almost 30% within a month, resulting in its current value. This comes after Grayscale’s Bitcoin investment product, Grayscale Bitcoin Trust, recorded its highest-ever discount of 48.89% last month. Albeit in the case of GBTC, recovery has been relatively better as, at the time of writing, the investment vehicle was trading at a discount of 45.17%.

In addition to this, Grayscale also faced the Securities and Exchange Commission’s (SEC) scrutiny after filing a lawsuit against the regulatory authority. The SEC was noted saying that a spot ETF was susceptible to fraud and manipulation, reiterating its rejection of Grayscale’s request for a Bitcoin spot ETF. 

US regulator justified this reasoning by saying the spot ETFs lacked federal oversight, unlike Bitcoin Futures which are monitored by the Chicago Mercantile Exchange (CME).

Ethereum price remains sideways bound

Ethereum price could be seen trading at $1,208 at the time of writing, rangebound between its immediate resistance and support levels at $1,240 and $1,187, respectively. While on the micro timeframe, the altcoin king is facing a struggle to recover its losses, on the macro, the cryptocurrency is doing far better. Despite dropping by almost 11.5% in December, ETH remain in a longer-term uptrend, preparing for a rise toward $1,300.

If the bullish momentum kicks in, Ethereum price could breach $1,240 and set sights at flipping $1,306 into a support floor. Such a scenario would allow the ETH price to prepare a rise toward $1,352 and initiate recovery.

ETH/USD 4-hour chart

ETH/USD 4-hour chart

However, if Ethereum loses the support of the uptrend line and falls below $1,187, it would need to find stability around the critical support level at $1,148. If it fails to do so, a daily candlestick close below this level would invalidate the bullish thesis and lead ETH to tag the lows of $1,082.


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


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.

More Bitcoin News
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins. 

More Bitcoin News
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.

More Solana News
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP