Will Fidelity Ethereum ETF Auction Trigger ETH Price Rally?

Asset management firm Fidelity has filed with the US Securities and Exchanges Commission (SEC) for an Ethereum Exchange Traded Fund (ETF). Experts suggested that the filing could boost ETH in a bull run.

Unlike Fidelity, investors in the United States do not have a regulated way to expose themselves to Ethereum. Therefore, Cboe proposed to list and trade the shares of the proposed Ethereum ETF on the BZX exchange.

Ethereum ETF could shake up the market.

Fidelity's move into the Ethereum ETF space is expected to fuel a bullish market trend for the price of ETH due to recent market volatility. Notably, the SEC recently reviewed several Bitcoin ETF applications from major traditional financial institutions such as BlackRock.

This development boosted BTC's price to a new annual high amid continued market optimism. Still, the SEC has announced in several places that it will delay its decision on Bitcoin ETF applications until 2024.

Read more: How to prepare for a Bitcoin ETF: A step-by-step approach

Spot crypto ETFs are investment vehicles that track the value of an asset, allowing investors to gain exposure without direct ownership. Analysts suggest that such offerings could make it easier to enter the crypto market.

As Fidelity ranks as the world's third-largest asset manager, overseeing $4.2 trillion in assets under management, its involvement could fuel even more interest in Ethereum.

ETH price to provide a buying opportunity

In this regard, market experts emphasize the potential for a positive direction for ETH, especially since several major financial institutions have indicated that they are offering Ethereum ETFs.

“You're lucky enough to steal some ETH for less than $2,000. This opportunity will not last long,” said a seasoned crypto analyst.

Read more: 7 must-have cryptocurrencies for your portfolio before the next bull run

Similarly, BeinCrypto's global head of news, Ali Martinez, highlighted Ethereum's potential upside after clearing the $2,150 resistance level. Martinez indicated that a dip to $1,700 could be a unique buying opportunity before the rally resumes.

“ETH will test the upper resistance zone between $2,000 and $2,150, along the x-axis of the ascending triangle pattern. A pullback from this resistance level could dip to the triangle hypotenuse at $1,700, setting the stage for further upside,” Martinez said. .

According to data from BeInCrypto, Ethereum was trading at $1,966 at press time, an increase of about 2% over the past 24 hours.