The post 21Shares Set to Shake Up Crypto Market with Spot Ethereum ETF Launch on July 23 appeared first on Coinpedia Fintech News

In a highly anticipated move, 21Shares has submitted an amended S-1 form for its Spot Ethereum ETF, revealing crucial details about the Trust’s operations and fees. This announcement, made on Wednesday, July 17, sets the stage for what could be a significant development in the crypto investment world.

Sponsor Fee and Market Positioning

21Shares Core Ethereum Trust (CETH) will implement a sponsor fee of 0.21% of its Ethereum (ETH) holdings, as outlined in the SEC filing. This fee aligns closely with market standards, following VanEck’s 0.20% fee, which has sparked competitive pricing discussions among issuers. Additionally, 21Shares has proposed a six month fee waiver to attract investors, effective until the Trust’s assets reach $500 million. Bitwise has offered a similar fee waiver, though specific sponsor fee details remain undisclosed. Invesco Galaxy revealed a 0.25% fee in a July 9 filing, placing 21Shares second in the competitive fee structure for Spot Ethereum ETFs.

Source : SEC Archive Launch Timeline and Market Anticipation

The Ether ETF is expected to launch on July 23. Bloomberg reported that the final round of S-1 amendments, including fee details, was due on July 17. Eric Balchunas, a Senior Bloomberg ETF analyst, anticipates the launch next Tuesday if no last-minute issues arise. Preliminary SEC approval for at least four issuers has set the stage for forthcoming developments. The approval process has involved updating critical 19b-4 forms, with the historic May 23 approval of filings for eight applicants, including BlackRock, VanEck, 21Shares, and Grayscale.

Strategic Moves by 21Shares

21Shares’ proactive approach in structuring its ETF to appeal to potential investors in the crypto market is evident from the amended S-1 filing. The company was the first to submit an updated S-1 for its Ethereum ETF application, paving the way for other issuers to follow. The market now awaits S-1 amendments from Grayscale, Bitwise, BlackRock, Invesco Galaxy, Franklin Templeton, and VanEck. However, with VanEck and Invesco Galaxy having previously disclosed their fees, further updates may be minimal.

Significant Crypto Events and Market Attention

The anticipated Spot Ethereum ETF launch coincides with significant crypto events, such as The Bitcoin Conference in Nashville on Tuesday, July 23. The timeline is expected to draw considerable market attention, especially with Donald Trump scheduled to attend the conference. Trump’s presence is expected to heighten the buzz around the ETF launch, adding to the anticipation and excitement in the crypto community.

What’s Next for Ethereum ETF?

As the crypto world eagerly awaits the launch, the SEC’s preliminary approval of at least four issuers signals imminent developments. The historic May 23 approval of 19-b4 filings for applicants like BlackRock, VanEck, 21Shares, and Grayscale marked a pivotal moment. With the final procedural checks underway, the launch of the Spot Ethereum ETF by 21Shares is poised to make a significant impact on the market.

Conclusion

21Shares is leading the charge with its strategic and competitive approach to launching its Spot Ethereum ETF. With a low sponsor fee, a six month waiver to attract investors, and the backing of preliminary SEC approval, the company is set to make waves in the crypto investment world. As the market gears up for the launch on July 23, all eyes will be on 21Shares and the significant crypto events unfolding around this date.

🚨So called "Crypto experts" say it's game over for Bitcoin & altcoins.
But they're all missing something HUGE.
I just went through all the data.
What I found will shock you 💥
Let's start with $BTC Post-Halving Analysis
Many analysts see $BTC's post-halving consolidation as a normal phase.
Patience is likely needed BTC is up 3x since September, but how the market might move in the coming months.
Currently, we have 15 weeks of consolidation and a 13% decline from highs.
This chop is to be expected after a nearly 2x move from recent lows in January.
While it can feel frustrating and boring, this phase is a natural part of the process.
As you see, volatility is at low levels, which makes sense for a few reasons:
➢ Summer is a period of stagnation
➢ Uncertainty before the ETH ETF
➢ No clear narrative
But, it's often during these challenging times staying bullish can be most rewarding, and here's why,
👇👇

Technically, the current cycle is very similar to the 2017 and 2021 bull runs.
Now we are at the accumulation stage:
➢ In 2016 it lasted ≈4 months
➢ In 2020, ≈5 months
Once it breaks out from the accumulation stage, usually a parabolic move happens

Locally, it may seem to you that the cycle is over and you are being bombarded with bearish news:
➢ Germany sells $3B worth of BTC
➢ $900M outflows from BTC ETF
➢ CFTC jumptrading investigation
Such FUD is always created to make you doubt your investments
✅ FED Reserve Balance Sheet
The chart is bottoming after nearly 2 years of decline.
When the FED injects liquidity, it buys assets, adding them to its balance, and vice versa.
➢ Balance up: FED buys assets, adds liquidity
➢ Balance down: FED sells assets, removes liquidity

Keep an eye on the trends.
When the FED starts buying assets, it will inject more liquidity into TradFi.
Since crypto is closely tied to traditional markets, it will benefit from this increased liquidity as well

To understand how it works, let's look at the Stablecoin Index.
It indicates new capital coming into the crypto market.
And now, we are not even close to the amount of liquidity that was in the previous cycle.
More liquidity = more opportunities = more risk appetite
Let's see how VCs funded projects during the last bull run.
Historically, the most funding occurred in 2021 at the cycle's peak (≈$13B per quarter).
Currently, investments are 3-4 times lower.
Even with $BTC hitting new ATH, the market isn't at peak hype. When it is, we'll see a new ATH of invested money.

Another way to look at this correlation is by monitoring the Global Net Liquidity Index.
This indicator gathers major central banks' assets and FED reserves.
Currently, global liquidity is in consolidation, but things are going to change soon

Another catalyst is the US elections in Nov 2024.
Crypto is now a key part of politics, especially in the Trump vs. Biden race.
Trump even says he'll end Biden's war on crypto.
Such big support from the US Gov is a huge boost for the entire market
Altcoins
Now, let’s talk about altcoins and try to figure out when altseason might kick off.
If you are an altcoin holder: don't sell now, it may be your biggest mistake in this cycle.
Here are key factors why altcoins are likely to rise soon, and we’ll see altseason
BTC dominance
It represents the MCap of BTC as a percentage of the total crypto MCap.
Since April, this dominance has formed a range between 53.9% and 57%.
Once dominance starts to decline and breaks below this range, it will be an excellent signal for the upcoming altseason.

ETH ETF approval is on the horizon.
While the exact date remains a mystery, rumors suggest we could see approval as early as July.
This milestone could clarify altcoin trends and pave the way for more ETFs
SOL ETF will be the next.
3iQ Corporation has applied to launch a spot $SOL -ETF in Canada under the ticker QSOL.
The company has assets worth ~$1 billion.
Canada had spot ETFs for BTC and ETH even before the US had futures ETFs for both assets

While Top-10 coins outperform the rest of altcoins, let's look at OTHERS/BTC.
OTHERS represents the entire crypto market cap minus the top 10 — a true reflection of altcoins.
We're at the same spot as in Summer 2023, are you bullish enough

A similar situation occurred during the previous cycle.
During the COVID crash, we saw BTC drop by 63%, while many altcoins dropped by 80%.
This pain point became the best entry point for most coins

What i concluded is that no matter what happens next, there will be a lot of uncertainty, alot of crazy ups and down will be around, the best is to HODL no matter what comes next, eventually everything will move up, everything will go bullish, #dyor
#ZeusInCrypto #BitcoinByZeusInCrypto #altcoinsByZeusInCrypto

Technical analysis (TA), often referred to as charting, is a type of analysis that aims to predict future market behavior based on previous price action and volume data. The TA approach is extensively applied to stocks and other assets in traditional financial markets, but it is also an integral component of trading digital currencies in the cryptocurrency market.

In contrast to fundamental analysis (FA), which considers multiple factors around the price of an asset, TA is strictly focused on historical price action. Therefore, it is utilized as a tool to examine an asset's price fluctuations and volume data, and many traders employ it in an attempt to identify trends and favorable trading opportunities.

While primitive forms of technical analysis appeared in the 17th century Amsterdam and 18th century Japan, the modern TA is often traced back to the work of Charles Dow. A financial journalist and founder of The Wall Street Journal, Dow was among the first to observe that individual assets and markets often move in trends that could be segmented and examined. His work later gave birth to the Dow Theory that encouraged further developments in technical analysis.

In the early stages, the rudimentary approach of technical analysis was based on hand-made sheets and manual calculations, but with the advance of technology and modern computing, TA became widespread and is now an important tool for many investors and traders.


How does technical analysis work?

As mentioned, TA is basically the study of an asset’s current and previous prices. The main underlying assumption of technical analysis is that fluctuations in the price of an asset are not random and generally evolve into identifiable trends over time.

At its core, TA is the analysis of the market forces of supply and demand, which are a representation of the overall market sentiment. In other terms, the price of an asset is a reflection of the opposing selling and buying forces, and these forces are closely related to the emotions of traders and investors (essentially fear and greed). 

Noteworthy, TA is considered more reliable and effective in markets that operate under normal conditions, with high volume and liquidity. The high-volume markets are less susceptible to price manipulation and abnormal external influences that could create false signals and render TA useless.

In order to examine prices and eventually spot favorable opportunities, traders utilize a variety of charting tools known as indicators. Technical analysis indicators can help traders identify existing trends and also provide insightful information into trends that may emerge in the future. Since TA indicators are fallible, some traders make use of multiple indicators as a way to reduce risks.


Common TA indicators

Typically, traders who use TA employ a variety of different indicators and metrics to try and determine market trends, based on charts and historical price action. Among the numerous technical analysis indicators, simple moving averages (SMA) are one of the most used and well-known examples. As the name suggests, the SMA is calculated based on the closing prices of an asset within a set time period. The exponential moving average (EMA) is a modified version of the SMA that weights recent closing prices more heavily than the older ones.

Another commonly used indicator is the relative strength index (RSI), which is part of a class of indicators known as oscillators. Unlike simple moving averages that simply track price changes over time, oscillators apply mathematical formulas to pricing data and then produce readings that fall within predefined ranges. In the case of the RSI, this range goes from 0 to 100.

The Bollinger Bands (BB) indicator is another oscillator-type that is quite popular among traders. The BB indicator consists of two lateral bands that flow around a moving average line. It is used to spot potential overbought and oversold market conditions, as well as to measure market volatility.

Besides the more basic and simple TA instruments, there are some indicators that rely on other indicators to generate data. For instance, the Stochastic RSI is calculated by applying a mathematical formula to the regular RSI. Another popular example is the moving average convergence divergence (MACD) indicator. The MACD is generated by subtracting two EMAs to create the main line (the MACD line). The first line is then used to generate another EMA, resulting in a second line (known as the signal line). In addition, there is the MACD histogram, which is calculated based on the differences between those two lines.


Trading signals

While indicators are useful for identifying general trends, they can also be used to provide insights into potential entry and exit points (buy or sell signals). These signals may be generated when specific events occur in an indicator's chart. For example, when the RSI produces a reading of 70 or more, it could suggest that the market is operating under overbought conditions. The same logic applies when the RSI declines to 30 or less, which is generally perceived as a signal for oversold market conditions.

As previously discussed, the trading signals provided by technical analysis are not always accurate, and there is a considerable amount of noise (false signals) produced by TA indicators. This is especially concerning within the cryptocurrency markets, which are way smaller than the traditional ones and, as such, more volatile.


Criticisms

Although extensively used in all sorts of markets, TA is seemed by many specialists as a controversial and unreliable method, and is often referred to as a “self-fulfilling prophecy.” Such a term is used to describe events that only happen because a large number of people assumed they would happen.

Critics argue that, in the context of financial markets, if a large number of traders and investors rely on the same types of indicators, such as support or resistance lines, the chances of these indicators working increase. 

On the other hand, many TA supporters argue that each chartist has a particular way of analyzing the charts and using the many indicators available. This would imply that it is virtually impossible for a large number of traders to use the same particular strategy.


Fundamental analysis vs. technical analysis

A central premise of technical analysis is that market prices already reflect all fundamental factors related to a particular asset. But in contrast to the TA approach, which is mainly focused on historical price data and volume (market charts), fundamental analysis (FA) adopts a broader investigation strategy that places more emphasis on qualitative factors.

The fundamental analysis considers that the future performance of an asset is dependent on much more than just historical data. Essentially, FA is a method used to estimate the intrinsic value of a company, business or asset based on a wide range of micro and macroeconomic conditions, such as company management and reputation, market competition, growth rates, and industry health.

Therefore, we may consider that unlike TA that is mainly used as a prediction tool for price action and market behavior, FA is a method for determining whether an asset is overvalued or not, according to its context and potential. While technical analysis is mostly employed by short-term traders, fundamental analysis tends to be preferred by funds managers and long-term investors.

One notable advantage of technical analysis is the fact that it relies on quantitative data. As such, it provides a framework for an objective investigation of price history, eliminating some of the guesswork that comes with the more qualitative approach of the fundamental analysis.

However, despite dealing with empirical data, TA is still influenced by personal bias and subjectivity. For instance, a trader who is strongly predisposed to reach a certain conclusion about an asset will probably be able to manipulate his TA tools to support their bias and reflect their preconceived notions and, in many cases, this happens without their awareness. Moreover, technical analysis can also fail during periods in which markets don’t present a clear pattern or trend.


Closing thoughts

Besides the criticisms and the long-standing controversial debate about which method is better, a combination of both TA and FA approaches is considered by many as a more rational choice. While FA usually relates to long-term investment strategies, TA may provide insightful information into short-term market conditions, which may be useful for both traders and investors (for instance, when trying to determine favorable entry and exit points).

TL;DR

Candlestick charts are a popular tool used in technical analysis to identify potential buying and selling opportunities.

Candlestick patterns such as the hammer, bullish harami, hanging man, shooting star, and doji can help traders identify potential trend reversals or confirm existing trends.

Traders should also consider other factors, such as volume, market conditions, and overall trend direction, when making trading decisions.

What Are Candlesticks?

Candlesticks are a type of charting technique used to describe the price movements of an asset. First developed in 18th-century Japan, they’ve been used to find patterns that may indicate where asset prices have headed for centuries. Today, cryptocurrency traders use candlesticks to analyze historical price data and predict future price movements.

Individual candlesticks form candlestick patterns that can indicate whether prices are likely to rise, fall, or remain unchanged. This provides insight into market sentiment and potential trading opportunities.

What Is a Candlestick Chart?

Imagine you are tracking the price of an asset like a stock or a cryptocurrency over a period of time, such as a week, a day, or an hour. A candlestick chart is a way to represent this price data visually.

The candlestick has a body and two lines, often referred to as wicks or shadows. The body of the candlestick represents the range between the opening and closing prices within that period, while the wicks or shadows represent the highest and lowest prices reached during that period.

A green body indicates that the price has increased during this period. On the other hand, a red body indicates a bearish candlestick, suggesting that the price decreased during that period.

How to Read Candlestick Patterns

Candlestick patterns are formed by arranging multiple candles in a specific sequence. There are numerous candlestick patterns, each with its interpretation. While some candlestick patterns provide insight into the balance between buyers and sellers, others may indicate a reversal, continuation, or indecision.

It's important to note that candlestick patterns aren’t intrinsically buy or sell signals. Instead, they are a way of looking at current market trends to potentially identify upcoming opportunities. As such, it’s always helpful to look at patterns in context. 

This can be the context of the broader market environment or technical pattern on the chart, including the Wyckoff Method, the Elliott Wave Theory, and the Dow Theory. It can also include technical analysis (TA) indicators, such as Trend Lines, the Relative Strength Index (RSI), Stochastic RSI, Ichimoku Clouds, or the Parabolic SAR.

Candlestick patterns can also be used in conjunction with support and resistance levels. Support levels are price levels where demand is expected to be strong, while resistance levels are price levels where supply is expected to be strong.

Bullish Candlestick Patterns

Hammer

A hammer is a candlestick with a long lower wick at the bottom of a downtrend, where the lower wick is at least twice the size of the body.

A hammer shows that despite high selling pressure, bulls pushed the price back up near the open. A hammer can either be red or green, but green hammers may indicate a stronger bullish reaction.

Inverted hammer

This pattern is just like a hammer but with a long wick above the body instead of below. Similar to a hammer, the upper wick should be at least twice the size of the body. 

An inverted hammer occurs at the bottom of a downtrend and may indicate a potential to the upside. The upper wick indicates that the price has stopped its continued downward movement, even though the sellers eventually managed to drive it down near the open. As such, the inverted hammer could indicate that buyers may soon take control of the market.

Three white soldiers

The three white soldiers pattern consists of three consecutive green candlesticks that all open within the body of the previous candle and close above the previous candle's high. 

These candlesticks shouldn't have long lower wicks, which indicates that continuous buying pressure is driving the price higher. The size of the candlesticks and the length of the wicks can be interpreted as chances of a continuation or a possible retracement.

Bullish harami

A bullish harami is a long red candlestick followed by a smaller green candlestick that's completely contained within the body of the previous candlestick.

The bullish harami can be formed over two or more days, and it's a pattern that indicates that the selling momentum is slowing down and may be coming to an end.

Bearish Candlestick Patterns

Hanging man

The hanging man is the bearish equivalent of a hammer. It typically forms at the end of an uptrend with a small body and a long lower wick. 

The lower wick indicates that there was a big sell-off, but the bulls managed to regain control and drive the price higher. With this in mind, the sell-off after a long uptrend can act as a warning that the bulls may soon lose momentum in the market.

Shooting star

The shooting star consists of a candlestick with a long top wick, little or no bottom wick, and a small body, ideally near the bottom. The shooting star is similar in shape to the inverted hammer but is formed at the end of an uptrend.

It indicates that the market reached a high, but then the sellers took control and drove the price back down. Some traders prefer to wait for the next few candlesticks to unfold to confirm the pattern.

Three black crows

The three black crows consist of three consecutive red candlesticks that open within the body of the previous candle and close below the low of the last candle.

The bearish equivalent of three white soldiers. Ideally, these candlesticks shouldn't have long higher wicks, indicating that selling pressure continues to push the price lower. The size of the candlesticks and the length of the wicks can be used to judge the chances of continuation.

Bearish harami

The bearish harami is a long green candlestick followed by a small red candlestick with a body that is completely contained within the body of the previous candlestick.

The bearish harami can unfold over two or more days, appears at the end of an uptrend, and can indicate that buying pressure is waning.

Dark cloud cover

The dark cloud cover pattern consists of a red candlestick that opens above the close of the previous green candlestick but then closes below the midpoint of that candlestick.

High volume can often accompany this pattern, indicating that momentum may shift from bullish to bearish. Traders may wait for a third red bar to confirm the pattern.

Three Continuation Candlestick Patterns

Rising three methods

The rising three methods candlestick pattern occurs in an uptrend where three consecutive red candlesticks with small bodies are followed by the continuation of the uptrend. Ideally, the red candles should not break the area of the previous candlestick. 

The continuation is confirmed by a green candle with a large body, indicating that the bulls are back in control of the direction of the trend.

Falling three methods

The inverse of the three rising methods, the three falling methods instead indicate the continuation of a downtrend.

Doji

A doji forms when the open and close are the same (or very close). The price may move above and below the open but will eventually close at or near the open. As such, a doji can indicate a point of indecision between buying and selling forces. However, the interpretation of a doji is highly contextual.

Depending on where the open and close line falls, a doji can be described as the following:

Gravestone Doji

This is a bearish reversal candlestick with a long upper wick and the open and close near the low. 

Long-legged Doji

Indecisive candlestick with top and bottom wicks and the open and close near the midpoint.

Dragonfly Doji

Either a bullish or bearish candlestick, depending on the context, with a long lower wick and the open/close near the high.

According to the original definition of the doji, the open and close should be the same. What if the open and close aren't the same but are very close to each other? That's called a spinning top. However, since cryptocurrency markets can be very volatile, an exact doji is rare. As such, the spinning top is often used interchangeably with the term doji.

Candlestick Patterns Based on Price Gaps

A price gap occurs when a financial asset opens above or below its previous closing price, creating a gap between the two candlesticks.

While many candlestick patterns include price gaps, patterns based on this type of gap aren’t prevalent in the crypto market as trading takes place around the clock. Price gaps can still occur in illiquid markets, but aren’t useful as actionable patterns because they mainly indicate low liquidity and high bid-ask spreads.

How to Use Candlestick Patterns in Crypto Trading

Traders should keep the following tips in mind to use candlestick patterns effectively while trading cryptocurrencies:

1. Understand the basics

Crypto traders should have a solid understanding of the basics of candlestick patterns before using them to make trading decisions. This includes understanding how to read candlestick charts and the various patterns that can form.

2. Combine various indicators

While candlestick patterns can provide valuable insights, they should be used with other technical indicators to form more well-rounded projections. Some examples of indicators that can be used in combination with candlestick patterns include moving averages, RSI, and MACD.

3. Use multiple timeframes

Crypto traders should analyze candlestick patterns across multiple timeframes to gain a broader understanding of market sentiment. For example, if a trader is analyzing a daily chart, they should also look at the hourly and 15-minute charts to see how the patterns play out in different timeframes.

4. Practice risk management

Using candlestick patterns carries risks like any trading strategy. Traders should always practice risk management techniques, such as setting stop-loss orders, to protect their capital. It's also important to avoid overtrading and only enter trades with a favorable risk-reward ratio.

Closing Thoughts

Every trader can benefit from being familiar with candlesticks and what their patterns indicate, even if they don't incorporate them into their trading strategy.

While they can be useful in analyzing the markets, it's important to remember that they aren’t infallible. They’re helpful indicators that convey the buying and selling forces that ultimately drive the markets.

Further Reading

12 Terms Every Crypto Trader Should Know

Market Makers and Market Takers Explained

Liquidity Explained

Moving Averages Explained

What Is the RSI Indicator?


Disclaimer and Risk Warning: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer here for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.