Market Analysis: ETH/USD Growing Rapidly on News from BlackRock
FXOpen
As it became known, BlackRock has filed an application with the SEC for an ETF based on spot Ethereum. Information about the iShares Ethereum Trust appeared on the Nasdaq website.
If such an expression is acceptable, the price of the second cryptocurrency has gone in pursuit of bitcoin, which is rewriting the highs of the year amid expectations associated with the approval of applications for ETFs for spot bitcoin — approval from the SEC already seems inevitable.
In just 10 hours after the news was published, the price of ETH/USD increased by more than 10%. The excitement is fueled by speculation that other Wall Street giants may file bids after BlackRock.
The ETH/USD chart shows that:
→ the price of Ethereum came close to the year’s high at 2140, set in April;
→ RSI indicates that the market is extremely overbought, which means it is vulnerable to a pullback.
The likelihood of a rollback is increased by the fact that the price of ETH/USD has slowed down its growth near the resistance block, which is formed by:
→ the upper limit of the parallel downward channel;
→ resistance from the high of the year.
It is possible that a pullback could occur after the formation of a double or triple top pattern on the hourly charts with a false breakout of the year's high, which would lure more buyers into the market, thereby making the correction more reasonable. Fundamentally though, the backdrop will remain strong as potential application approvals will make it possible for a wide range of investors to easily invest in Ethereum, increasing demand for this crypto asset.
FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service (additional fees may apply). Open your trading account now or learn more about crypto CFD trading with FXOpen.
*Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
US Dollar Strengthens Amid Equity Market Weakness and Hawkish Fed Rhetoric
The US dollar continues to hold firm near multi-year highs as sentiment across equity markets deteriorates and investors increasingly expect the Federal Reserve to maintain a restrictive monetary policy stance for longer. The US economy remains resilient, while inflation risks
Bitcoin: Corrective Channel Broken as Traders Turn More Active
Bitcoin has come under the influence of several factors simultaneously. The wave of selling at the beginning of June was linked to Strategy's first disclosed Bitcoin sale in several years, a prolonged series of outflows from spot ETFs, and a
DAX 40: consolidation amid technology sell-off
A wave of selling in the technology sector that emerged earlier this week has weighed on European equities. The trigger was investor concern over the profitability of large-scale debt-funded investments by major US tech companies in AI infrastructure. The Nasdaq