Why is Ether (ETH) price going up today?
Ethereum's native token Ether (ETH) has rallied sharply over the past 24 hours, boosted by data that institutional investors are capitalizing on a bearish trend that started in early July to stockpile the second-largest cryptocurrency.
Meanwhile, updated filings with the US Securities and Exchange Commission (SEC) by VanEck and 21Shares for Ethereum exchange-traded funds (ETFs) have sparked renewed optimism.
Ethereum funds witness net positive returns.
The price of Ether recovered by 10.11% to reach 3,113 on July 9, compared to a local low of $2,830 a day earlier.
The ETH/USD rally coincided with the release of CoinShares' weekly report, which showed that Ether-linked investment funds had withdrawn $10.2 million in the week ended July 5. During the same period, the price of ETH fell roughly 14.70%, prompted by Matt Gox and the German government's selling pressure.
According to CoinShares researcher James Butterfill, institutional investors see the fall in the crypto market as a “buying opportunity”, meaning that they expect the market to continue to rise in the coming days or weeks.
VanEck, 21Shares send revised Ether ETF filings to SEC
In addition, VanEck and 21Shares are sending their revised Ether ETF filings to the SEC as part of their efforts to gain approval in July.
21Shares has filed an amended form for the Core Ethereum ETF. Although the filing did not specify the exact date the filing would begin on US exchanges, both ETFs indicated that they would begin the listing “as soon as practicable after the Effective Date.”
On May 23, the SEC approved Spot Ether ETF 19b-4 from eight asset managers, including VanEck, 21Shares and Bitwise. Experts estimate that final approvals could be given as early as this month.
During a Senate Banking Committee hearing in June, SEC Chairman Gary Gensler hinted that the commission could approve S-1s “sometime this summer,” though he did not specify an exact date.
ETH price technical rebound
Ethereum's sustained rally is part of a retracement that began after testing the 50-week exponential moving average (50-week EMA, red tide) as support around $2,788. As seen below, the same wave support covered ETH's previous bearish test.
As seen on the 4-hour (4H) chart, the rally helped ether break above the neck of the underlying double-bottom pattern.
A double bottom pattern is considered a bullish reversal pattern. It resolves when the price breaks above the neckline resistance and increases with the maximum distance between the deep point of the pattern and the neckline.
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Applying the same technical rule to the price of ETH brings the double-bottom target to around $3,300, which is a 6.40% increase from current price levels. However, a decline below the neckline could invalidate the bullish formation, raising the possibility that ETH will retest the $2,830 level – the local low – in July.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
