- Ethereum ETFs ‘will take some time’ before they launch, according to SEC Chair.
- ETH’s open interest on exchanges surged 50% to a new all-time high after SEC’s U-turn towards ETH ETFs.
- New accumulating addresses holding 10-10K and 10K-100K ETH have grown steadily after ETH ETF 19b-4 approvals.
Ethereum (ETH) price hovered around $3,860 on Wednesday following Securities & Exchange Commission (SEC) Chair Gary Gensler expressing his opinion that the launch of spot ETH ETFs may be delayed. Meanwhile, Ethereum derivatives products on exchanges have seen a surge in open interest (OI).
Daily digest market movers: ETH ETFs delay, rising open interest, new accumulating addresses growth
In an interview with CNBC on Wednesday, SEC Chair Gary Gensler said spot ETH ETFs would “take some time” before they go live on exchanges, indicating S-1 approvals are not imminent. He noted that his agency is still working on disclosure measures with exchanges.
Read more: Ethereum leveraged ETFs go live as price fails to react
After the SEC’s sudden approval of 19b-4 filings from eight issuers on May 23, several analysts expected the agency to respond to S-1 registration statements quickly. The SEC’s request for issuers to submit updated S-1 filings on Friday also seemed to have confirmed the expectations of these analysts.
Following the filings, Bloomberg analyst Eric Balchunas suggested spot ETH ETFs would launch in July. However, with Gensler’s recent comments, it may take longer before the ETFs begin trading.
In other news, open interest (OI) for ETH derivatives products on exchanges reached a new all-time high, rising by 50.3% to $14 billion, according to CCData Exchange Review for May. Notably, open interest on the Chicago Mercantile Exchange (CME) surged by 59.4% to $1.25 billion.
Also read: Ethereum sustains week-long consolidation, sees over $3 billion exodus from exchanges
Meanwhile, the balance of new accumulating addresses holding between 10 – 10K and 10K to 100K ETH has been growing steadily since the SEC’s pivot on ETH ETF, according to data from CryptoQuant.
ETH New Accumulation
ETH technical analysis: Ethereum to maintain sideways trend until spot ETH ETFs launch
Ethereum saw a slight gain on Wednesday, trading near $3,860 and continuing its sideways trend.
ETH’s 30-day MVRV also aligns with the horizontal move, hovering around 6% in the past week. This indicates that the number of Ethereum addresses that purchased the coin within the last 30 days has seen an average of 6% gains.
Read more: Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin’s momentum poise to propel crypto market
Despite the horizontal trend, whales are still accumulating ETH, and both long-term and short-term holders will likely hold onto their tokens.
ETH may continue its horizontal trend until the official launch of spot ETH ETFs. The $3,618 price level remains key support in case of short-term price swings. In the long term, ETH may overtake the $4,093 resistance and flip the $4,878 level to set a new all-time high of around $5,000.
ETH/USDT 4-hour chart
QCP Capital analysts also share the bullish view: “ETH has been lagging on this move, but we expect a catch-up and possibly even outperformance against BTC when the ETH spot ETF begins trading,” they said.
ETH liquidation data shows a total of $23.78 million liquidations, with $13.81 million of liquidated long positions and $9.97 million of shorts, according to data from Coinglass.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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