Chart of the day: ETHEREUM (11.01.2024)

The second largest cryptocurrency is trading close to 3% today after yesterday's rally, during which its rise far exceeded Bitcoin's. We can link this primarily to speculation around the creation of a spot ETF on Ethereum, which was already submitted a few months ago, by BlackRock (iShares Ethereum Trust) and other 6 Wall Street institutions such as Fidelity and VanEck. U.S. regulators have approved 10 spot ETF applications for Bitcoin. This fact has ignited speculation around the fact that we will see the approval of a similar application or applications with exposure to Ethereum in the near future.

Ethereum's status as a 'security' is unclear, but historical SEC comments indicate that Ethereum could be considered a 'digital commodity' similar to Bitcoin which may open a way to creating ETFs similar to Bitcoin. The second-largest cryptocurrency did not appear on the SEC's list of 68 cryptocurrencies recognized as assets in the summer of 2023. Polygon or Ethereum's competitors Solana and Cardano, among others, were recognized as such at the time (Howey test positive). A deadline for final Ethereum ETF approvals are from May to August (for BlackRock and Fidelity) which may signal, that the SEC may approve all Ethereum ETFs, maybe in Q2 2024.

Ethereum (D1 interval)

Ethereum yesterday overcame an important resistance level determined by previous price reactions and the 38.2 Fibonacci abolition of the 2021 downward wave. At the same time, however, the extent of the upward impulse, which has been going on since August/September 2023, has reached limits very close to the previous impulse in the fall of 2022 and spring of 2023. If a similar upward structure were to be maintained, a retest of the strength of the resistance, which has become support, at $2,400 per ETH is not out of the question. If the strong upward trend is maintained, the next significant support is the level of $3400 where we see the 23.6 Fibo.

Source: xStation5