- SEC delays the decision on BlackRock’s application for trading options on Ethereum Trust.
- Over 100K ETH added to Ethereum exchange reserves in the past 24 hours.
- Ethereum could maintain a bullish trend if it surpasses the $2,707 key resistance.
Ethereum (ETH) is showing a support level around $2,595, even as the cryptocurrency market navigates recent turbulence. This comes after the SEC delayed its decision on BlackRock’s application to list and trade options contracts on the iShares Ethereum Trust (ETHA), creating a bit of a stir in the market.
SEC’s Postponement of Ethereum Options Decision
The Securities and Exchange Commission (SEC) has decided to postpone its decision on BlackRock’s request to trade options on the iShares Ethereum ETF (ETHA). The delay has caught many off guard, especially since the regulator had recently greenlit spot Bitcoin ETFs. This move has, unfortunately, resulted in disappointment for investors.
Following the announcement, Ethereum ETFs saw a net outflow of $79.3 million on Monday, the largest since late July. The Grayscale ETHE, in particular, experienced an $80.6 million exodus. These outflows suggest that Ethereum is yet to attract substantial interest from traditional institutional investors in the U.S.
Interestingly, the Ethereum exchange reserve has shown an uptick recently, adding over 100K ETH within the past 24 hours. According to CryptoQuant data, this rise in reserves might indicate impending selling pressure.
ETH Exchange Reserve
Ethereum’s Path to Break $2,707 to Maintain Bullish Momentum
Currently trading around $2,660, Ethereum has experienced a slight 0.5% decline. Over the past 24 hours, ETH has recorded $19.67 million in liquidations, with long and short liquidations comprising $13.88 million and $5.79 million, respectively.
On the 4-hour chart, Ethereum finds itself within crucial rectangle boundaries after rebounding from the $2,595 support level. Holding this support could potentially drive ETH to reclaim the $2,817 level, a significant support zone for over four months. However, Ethereum needs to surpass a key resistance at $2,707 to confirm a bullish trajectory.
ETH/USDT 4-hour chart
According to QCP Capital analysts, options data suggests a possible bullish movement amid rising market volatility. They noted, “Front end skew for ETH has shifted from puts to calls, while ETH implied vol is trading 9% higher than BTC, suggesting both upside sentiment and higher expected volatility.”
Additionally, momentum indicators like the Relative Strength Index (RSI) and Stochastic Oscillator are above their neutral levels on the 4-hour chart, reflecting ongoing bullish pressure.
If Ethereum closes below $2,595 daily, it may trigger a bearish sentiment or cause prolonged consolidation. In the meantime, ETH could climb to $2,671 to liquidate positions worth $51.73 million.
Cryptocurrency Metrics FAQs
The creator of each cryptocurrency sets the total number of tokens that can be minted. These assets can be minted through mechanisms like mining, staking, or other algorithms defined by the blockchain technology. For example, there are currently 19,445,656 BTC in circulation. The circulating supply can also decrease through actions like token burning or sending assets to incompatible blockchain addresses.
Market capitalization is calculated by multiplying the circulating supply of an asset by its current market value. For instance, Bitcoin had a market capitalization exceeding $570 billion in early August 2023, derived from over 19 million BTC in circulation with a price around $29,600.
Trading volume measures the total number of tokens transacted within set trading hours, like 24 hours. This metric is used to gauge market sentiment, combining volumes from centralized and decentralized exchanges. Increased trading volume usually indicates higher demand for the asset.
Funding rates are designed to align perpetual contract prices with spot markets. Positive funding rates mean higher perpetual contract prices, where bullish traders pay those with short positions. Conversely, negative rates mean lower perpetual contract prices, and traders with short positions pay those holding long positions.
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