Ethereum has started eyeing the $3,600 price mark after a successful debut of Ethereum Exchange-Traded Funds (ETFs) that brought in over $1 billion inflows on their first day of trading. This major inflow seen in the new Ethereum ETF funds matches the major outflows emanating from the Grayscale Ethereum Trust (ETHE).
This development has recorded over $484.9 million in trading outflows in 24 hours. This is calculated at 5% of the previously recorded $9 billion fund. The Ethereum Trust (ETHE) was first launched in 2017 to allow institutional investors to leverage Ethereum investment by buying a significant amount and locking it up for six months.
Some market players have attributed the huge outflows experienced on the Ethereum ETF’s first day of trading to the ease at which investors can sell their shares and get their money back. Etherum’s Choppiness Index (CHOP) is at 48.10, which suggests that the market is currently in a neutral market state.
It says it shows signs of a likely consolidation before making any major move. Traders and investors are advised to look for a bold move at $3,519.04. Such development is expected to give way for it to attain the $3,600 price level.
BlackRock CEO Says Ethereum ETF is Innovative, Precedes Cryptocurrency Trading
The successful introduction of the ETF caused Ethereum’s price to soar, increasing by around 10% in a couple of hours. The $3,600 mark is a key psychological barrier that the Ethereum is now aiming for and might lead to greater rises.
The CEO of BlackRock, Larry Fink, emphasized Ethereum’s significance in digital finance. Fink stated, “Ethereum is a platform for innovation, not just a cryptocurrency. Our clients now have new investment options, and the Ethereum exchange-traded fund (ETF) marks a major milestone in developing the cryptocurrency market.”
As of press time, Ethereum is trading at $3,436.89, amid the bears showing intense resistance around the $3,519.04 price level. The presence of the bull is an indication of a prospective movement towards the $3,600 price mark.
Ethereum ETF Performance Compared to Bitcoin ETF First Day Trading
The price increase of Ethereum is expected to draw greater attention to the ecosystem and underlying technology of the platform. The Ethereum Spot Exchange Traded Funds (ETFs) recorded over a billion dollars, with a net inflow of $106.78 million on its first day.
This is similar to the 20% of $4.5 billion in trading volume by the Bitcoin ETF on the first day of trading after launch. The Bitcoin ETF also recorded a $600 million net inflow during its first trade. However, the iShares Ethereum Trust ETF from BlackRock led with $266.5 million in total inflow, seconded by Bitwise’s spot Ethereum ETF, which recorded $204 million in trading.
It still needs to be debated how the volume of Ethereum ETFs traded on the first day can be a 20% of Bitcoin ETF’s total trading volume on its first day. Some cryptocurrency market analysts say they expected a lower trading volume because of the system’s lack of staking features.
Ethereum Defends Price at $3,400, Franklin Templeton Proposes Solana ETF
The positive performance pulled by Ethereum on its first day explains why the price of Ethereum escaped breaking below the $3,400 price level on July 24th. This happened when the selling frenzy went out of proportion in the past 24 hours.
Ethereum has vigorously defended its new price position at $3,400 during the vigorous market activities that followed intense fluctuations on July 24th. The price of Ethereum was expected to experience a major breakout at $3,600. This trend is motivated by the 0.618 Fibonacci (Fib) retracement price level, currently at $3,312.75.
The price of Ethereum may finally find Support at $3,312.75 if it doesn’t break above the current resistance level. The following support line of Ethereum is projected at $2,747.64. Meanwhile, Franklin Templeton, a globally acclaimed financial managers has proposed Solana spot ETFs after witnessing positive performance in the Spot Ethereum ETFs.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
