Tomorrow is a big day for Ethereum. Eight spot Ethereum ETFs are set to start trading. Grayscale, Fidelity, Invesco, VanEck, Franklin Templeton, 21Shares, Bitwise, and iShares (BlackRock) are the issuers.
Letâs talk about what you should expect from both the stock and crypto markets once they go live.
Analysts believe that these ETFs could affect ETHâs price more than Bitcoinâs did to it. This is because of Ethereumâs lower inflation rate, lower staking costs, and the fact that 28% of ETH is staked.
Some predict that ETH could see a modest price increase in the beginning. But as investors move out of Grayscaleâs ETH trust, there might be a âsell the newsâ event. But, donât lose hope. New highs could still be reached by the end of the year.
Right now, Etherâs trading at $3,439, down slightly by 0.64%. The price action shows consolidation within a narrow range. This means traders are actively waiting for the ETF launch.Â
Key resistance levels to watch are $3,641, $3,768, $3,895, and $3,974. If bullish momentum picks up, breaking these levels will see us smashing way past $4,000.
The Ichimoku cloud shows short-term support at $3,499, while the TEMA (9) indicates support at $3,457. Holding these levels could signal a bullish continuation.Â
But a drop below will trigger a prolonged consolidation. The RSI divergence value of -9.63 points to a potential bearish move or correction period in the near future.
Just like the outflow seen with Grayscaleâs BTC ETF during its conversion, the Ether ETF might face the same issue. Grayscaleâs ETH ETF has a higher management fee of 2.5% compared to the typical 0.2% for other ETFs.Â
This could cause like $10 billion in selling pressure. Thatâs big enough to shake Etherâs price and make it tumble below $3,000 for the first time in many months. QCP Capital said:
âThe lack of positive reaction is a negative reaction. Right now, the market seems to be seeing who folds first to âsell the newsâ.â
More volatility is expected throughout the week. The anticipation has already caused implied volatility in ETH options to jump from 56% to 70%. This means the market is bracing for a bumpy ride.