Last Updated on October 22, 2023 by Bitfinsider
Another Ethereum spot exchange-traded fund (ETF) announcement surfaced as the week came to a close. This raises the question: Did Ethereum react similarly to how Bitcoin did in the past when ETF adjustments were made?
InvescoUS and Galaxy have significantly updated their spot Ethereum ETF submission with the Securities and Exchange Commission (SEC), according to an intriguing document that surfaced on October 20. This most recent application, which was made through the Cboe exchange, is the fifth active ETH ETF application.
In recent days, the daily Ethereum chart has shown a seesaw pattern of profits and losses. However, there is a noticeable pattern of several days punctuated by small gains and sporadically large losses.
Notably, the spot ETF update on October 20 coincided with a stunning price increase. ETH recorded an amazing gain of more over 2.3% on this crucial day, breaking beyond the $1,600 barrier. With this increase, the price of ETH was safely over the RSI’s neutral line.
Though with a minor increase of less than 1%, ETH was still maintaining its value above $1,600 at the time of writing. Despite a modest fall, the RSI continued to trend above the neutral line. This price change acted as an unmistakable and convincing sign of the real significance of the spot ETF upgrade.
Data from Coinglass indicates that traders have kept their expectations for the price of Ethereum high. The funding rate has been consistently positive in recent days, which is a notable example of this confidence in action. The funding rate was roughly 0.049 at the time of this update, despite a slight reduction as well. This data revealed that despite ETH’s recent price increase, traders are still holding long bets in the cryptocurrency.
In addition, the asset’s price pattern suggested that the adage “sell the rumor, buy the news” would continue to be prevalent. This suggests that if a spot ETF is allowed, price dynamics will probably be affected. However, until such approvals are implemented, it is unclear how much of an impact there will actually be.
Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.