Ethereum: Unable to rally as new future ETFs volumes disappoint

  • Cryptos struggle as relentless Treasury selloff continues; 10-year yield rises 5.2bps to 4.731%
  • Proshares Ethereum ETF (EETH) traded only 21,000 shares
  • VanEck’s Ethereum Strategy ETF (EFUT) traded only 29,000 shares

Over the past several months the focus in the cryptoverse has been on whether the SEC will approve a spot Bitcoin ETF. Hampered by SEC delays, sentiment for cryptos have struggled immensely, especially given the chaos sparked by the bond market.

Sentiment could be improving given the SEC has just approved a handful of Ether futures ETFs.  Bitcoin future ETFs already exist, but the SEC decision to give approval to Ethereum is somewhat news considering it has always been thought as a bigger risk to getting the security tag.

Ethereum posted a nice rally to start the week following the ETF launches done by Valkyrie, VanEck, Proshares, and Bitwise.  The massive Ethereum ETF launch was to make sure everyone had a fair chance, which is what not happened a couple years ago for Bitcoin when BITO launched alone and dominated the ETF market share.

Ethereum Daily Chart

Ethereum’s Monday pump was faded on both disappointing ETF trading volumes and as prices quickly respected a confluence of resistance from the 50- and 200-day SMA. The death cross that formed at the end of August saw bearishness tentatively exhausted after making a low at $1531 on September 11th.

Ethereum could start attracting more interest once price closes above the $1810 level. Ethereum’s more diversified blockchain ecosystem has yet to trigger a gamechanger for the use-case argument for cryptos, but optimism remains that some of its products and offerings are driving the majority of the interest. If bearishness resumes, downside targets include $1510, which is the 50% retracement of the 2022 low to 2023 high move.

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Ed Moya

Ed Moya

Contributing Author at OANDA
With more than 20 years’ trading experience, Ed Moya was a Senior Market Analyst with OANDA for the Americas from November 2018 to November 2023.

His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies.

Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Prior to OANDA he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news.

Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business, cheddar news, and CoinDesk TV. His views are trusted by the world’s most respected global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Seeking Alpha, The New York Times and The Wall Street Journal.

Ed holds a BA in Economics from Rutgers University.

Ed Moya

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