In this article. Eight major financial institutions will launch spot Ethereum ETFs on the first day of trading tomorrow.
These ETFs could boost the price of #BTC , but the market could face increased volatility and selling pressure from graybacks.
Tomorrow is a key day for Ethereum: eight Ethereum ETFs will begin trading. Their issuers are Grayscale, Fidelity, Invesco, VanEck, Franklin Templeton, 21Shares, Bitwise and iShares (BlackRock).
Let's talk about what to expect from the stock and cryptocurrency market after the launch of ETFs.
Analysts believe that these ETFs can have a greater impact on the price of #BTC than #bitcoin . This is because Ethereum has a low inflation rate, low cost of betting and the fact that 28% of ETH is on bets.
Some predict that the price of ETH may rise slightly at first. However, there could be a "news sale" when investors withdraw from Grayscale's ETH trust fund. However, one should not lose hope. There is still potential for new highs before the end of the year.
Ether is currently trading at $3,439, down slightly by 0.64%. The price action is showing consolidation in a narrow range. This means that traders are actively waiting for the #ETF launch.
The major resistance levels are at $3,641, $3,768, $3,895, and $3,974. If the bullish momentum intensifies, these levels could be broken to break above $BTC the equilibrium cloud shows short-term support at $3,499 and TEMA (9) at $3,457. However, below these levels, a longer-term consolidation will follow, and the RSI divergence value of -9.63 indicates a possible short-term bearish move or correction.
Like the outflows seen during the Grayscale #BTC ETF conversion, the Grayscale Ether ETF may face the same problem: Grayscale's ETH ETF management fee is high at 2.5%, compared to the typical 0.2% for other ETFs.
The lack of a positive reaction is a negative reaction. Right now, the market seems to be focused on who will be the first to 'sell the news'.
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