ETH Price Fluctuates After SEC Greenlights Spot Ethereum ETFs -

The US Securities and Exchange Commission (SEC) has approved the filing of 19b-4 documents by financial institutions seeking to establish Spot Ethereum ETFs. These institutions include VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise. However, there are still steps remaining for the approval of S-1 documents, which are necessary for official stock market trading.

Analysts from Bloomberg estimate that the approval process might take several months. Additionally, the chairman of the US SEC retains the right to withdraw the approval within 10 days.

JPMorgan analysts predict that the recently approved Spot Ethereum ETFs by the US SEC will begin trading before November 2024, as cryptocurrency support has become a political agenda.

Standard Chartered Bank believes that Solana (SOL) and XRP (Ripple) might be the next digital assets to receive ETF approvals, though possibly not until 2025. This is based on the US SEC’s approval of the Spot Ethereum ETFs, which might indicate similar coins are being considered commodities and could be approved in the future.

Hong Kong’s Securities and Futures Commission (SFC) is considering allowing issuers of Spot Ethereum ETFs to offer staking services under regulatory supervision. Discussions are being been held between the SFC and previously approved fund managers.

The US House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21) with a vote of 279 to 136. The bill, which is led by Republicans with 71 Democrats supporting it, aims to regulate digital assets in the future.

Donald Trump, the Republican presidential candidate, has expressed support for digital assets, stating that he has a positive and open attitude towards the cryptocurrency industry and wants the US to become a leader in this sector.

Weekly Technical Analysis: May 28-June 3 2024

Bitcoin (BTC)

BTC tested the resistance level of 70,000 USD but did not break through. There is a chance it might pull back to test the support level at 65,000 USD following the inverse head-and-shoulders pattern. If it fails to hold, it could drop to 60,000 USD. However, if it manages to break through the resistance, it could test the previous high of 74,000 USD.

Support: 2,400,000 THB | Resistance: 2,800,000 THB

Support: 65,000 USD | Resistance: 74,000 USD

Ethereum (ETH)

ETH tested the resistance level of 4,000 USD but then pulled back, experiencing strong selling pressure on the day the Spot Ethereum ETF approval was announced, to 3,500 USD. This price serves as short-term support. If it holds, ETH could continue to rise and break through the resistance. If it surpasses the 4,000 USD mark, the first target will be 4,200 USD.

Support: 130,000 THB | Resistance: 155,000 THB

Support: 3,500 USD | Resistance: 4,200 USD

Ethereum Name Service (ENS)

ENS has surged by 84.25% over the past week, testing a significant resistance level at 30 USD. If it breaks through this resistance, the trend could turn bullish. If not, and it pulls back, the buyable support level is 25 USD.

Support: 840 THB | Resistance: 1,120 THB

Support: 25 USD | Resistance: 30 USD

Pepe (PEPE)

PEPE rose by 67.77% in the past week, successfully breaking the key resistance level of 0.015 USD. This price will now act as crucial support, with a short-term resistance target of 0.018 USD. However, the rapid price increase could lead to high volatility.

Support: 0.00050 THB | Resistance: 0.00070 THB

Support: 0.000015 USD | Resistance: 0.000019 USD

Trading and Investment Considerations For The Week

The US SEC unexpectedly approved the Spot Ethereum ETFs. However, the price remains volatile because this approval is only the first step. Further approval is needed for trading on the stock market, and the timeline for this is still unclear, potentially taking months.

Moreover, this approval represents the delegation of authority from the SEC commissioners to the staff rather than a direct decision from the SEC chairman, leaving room for potential reversal. In the short term, ETH’s price is expected to remain volatile due to the uncertainty surrounding trading commencement, despite the approval. The capital flow into these ETFs might be smaller and take longer compared to the Spot Bitcoin ETFs. Nonetheless, the long-term outlook for Ethereum remains positive.

New factors supporting the cryptocurrency market include Donald Trump’s policy announcement in favor of digital assets and speculation that the approval of the Spot Ethereum ETFs was politically motivated, along with the passage of regulatory legislation for the cryptocurrency business. These factors will positively impact the market in the medium to long term.

The key highlight of this week is the announcement of the US first-quarter economic forecast on May 30, which predicted a growth of 1.3%, down from 3.4% in the previous month. If the forecast holds, it could positively impact the market due to expectations of a weakening US economy, potentially leading to more relaxed monetary policies.

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Past returns or performance of digital assets do not guarantee future returns or performance.

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